development of a situational maturity model for e-business · 7 2. methodology figure 1. project...
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Eindhoven University of Technology
MASTER
Development of a situational maturity model for E-business
Petrachkov, N.A.
Award date:2012
Link to publication
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Development of a Situational Maturity Model for E-business
Nikolay Petrachkov
August 2012
2
Department of Mathematics and Computer Science
Development of a Situational Maturity Model for E-business
Nikolay Petrachkov
In partial fulfillment of the requirements for
The degree of Master of Science in
Business Information Systems
Supervisor:
dr. M. (Marco) Comuzzi
Examination committee:
dr. M. (Marco) Comuzzi
dr. ir. H. (Rik) Eshuis
dr. A. J. M. M. (Ton) Weijters
Eindhoven, August 2012
3
Table of Contents 1. Introduction .................................................................................................................................... 5
Problem and Research Questions ....................................................................................................... 6
2. Methodology ................................................................................................................................... 7
2.1. Methodology description ............................................................................................................ 7
2.2. Design science research approach .............................................................................................. 8
3. Related work ................................................................................................................................. 11
3.1. Maturity model comparison framework .............................................................................. 11
Stages of growth theory ................................................................................................................ 14
CMM and CMMI ............................................................................................................................ 16
3.2. Comparison of IS maturity models ....................................................................................... 18
E-business and E-commerce maturity models .............................................................................. 18
E-government maturity models .................................................................................................... 21
Enterprise Resource Planning ....................................................................................................... 23
Product Lifecycle Management .................................................................................................... 24
Business Process Management ..................................................................................................... 25
Summary ........................................................................................................................................... 26
4. E-business ..................................................................................................................................... 28
4.1. Definition .............................................................................................................................. 28
4.2. Structure ............................................................................................................................... 29
Classification space ....................................................................................................................... 33
5. Situational E-business Maturity Model ......................................................................................... 35
5.1. Maturity model development process ................................................................................. 35
5.2. Define scope.......................................................................................................................... 38
5.3. Model design ......................................................................................................................... 39
Description of levels in the GPIS model ........................................................................................ 39
Structure of the SMME ................................................................................................................. 42
Definition of the SMME maturity levels........................................................................................ 43
Definition of the dimensions of the SMME................................................................................... 44
IT infrastructure ............................................................................................................................ 44
Processes ....................................................................................................................................... 46
People ........................................................................................................................................... 47
Work Environment ........................................................................................................................ 48
5.4. Barriers and Critical Success Factors ..................................................................................... 49
4
Level 0 ........................................................................................................................................... 50
Level 1 ........................................................................................................................................... 50
Level 2 ........................................................................................................................................... 51
Level 3 ........................................................................................................................................... 52
Level 4 ........................................................................................................................................... 52
5.5. Application method .............................................................................................................. 53
The assessment tool ..................................................................................................................... 53
Respondents ................................................................................................................................. 61
5.6. Design evaluation .................................................................................................................. 62
5.7. Reflection on evolution ......................................................................................................... 63
Subject of change .......................................................................................................................... 63
Frequency...................................................................................................................................... 63
Structure of change ....................................................................................................................... 64
6. Discussion ...................................................................................................................................... 65
7. Conclusions ................................................................................................................................... 67
8. Future work ................................................................................................................................... 70
Bibliography .......................................................................................................................................... 71
Appendix ............................................................................................................................................... 75
Expert feedback #1 “Capgemini” (interview notes).................................................................... 139
5
1. Introduction The rise of the Internet in 1990s caused emergence of the new business
possibilities linked to the features of the Internet. Many companies started to exploit
these new possibilities by selling, advertising goods and services online. In 2000 it
became clear that many of these ventures are not profitable and cannot compete with
traditional business.
Many terms such as Internet commerce (I-commerce), Electronic commerce (E-
commerce), Digital commerce, Electronic business (E-business) were invented to
reflect the way of doing business over the Internet. Other terms that are connected to
the adoption of the Internet in business emerged as well such as Electronic
marketing (E-marketing), Electronic Customer Relationship Management (E-CRM),
E-SCM (Electronic Supply Chain Management). In order to understand the
phenomena and provide help for companies, academics and consultants study it
from different aspects such as strategy, business models, readiness, structure and
elements, maturity assessment.
Maturity assessment is based on the concept of maturity models. According to
Becker et al [7] a maturity model “consists of a sequence of maturity levels for a class
of objects” and “it represents an anticipated, desired, or typical evolution path of
these objects shaped as discrete stages”. Maturity itself is regarded as “a measure to
evaluate the capabilities of an organization in regards to a certain discipline” [44].
Maturity models are used to position the company among maturity levels (to
determine the current situation) and to derive improvements measures and to plan
the related strategy [43,63].
In the aspect of the e-business/e-commerce maturity assessment several models
were proposed [10,20,45,72] that analyze e-business/e-commerce development from
different perspectives. Models of [45,72] focus on technological aspects, while models
of [10,20] focus on business aspects. From the point of view of used framework or
defined dimensions, some dimensions were derived from previously developed
frameworks, such as 7S framework from McKinsey was used by [45] to derive
dimensions. In other models, such as [20], it is not clearly stated how dimensions
were obtained.
Recently research on the development of the maturity model has been conducted
by [7,60,73].These efforts resulted in the development of the classification system for
maturity models by [60] and recommendations on the development process of
maturity models. In the e-business domain, [63] proposed comparative framework
for the evaluation of e-business stages of growth models. In the literature study the
framework, combined from classification system by [60] and comparative framework
by [63], was used to evaluate e-business maturity models. A number of issues were
identified from the literature study and conclusion was made that there is a need for
maturity assessment model that will contain clear definition of the key terms, such as
e-business, e-commerce, and supply chain. These definitions would provide better
support for the application of the model. The model shall also contain a clear
statement that the model is suitable only to small or medium sized organizations, to
large companies or universal.
6
Problem and Research Questions The problem of the research is to develop a maturity assessment model for e-
business that:
would contain definitions of key terms;
would be developed based on a well-established development process;
would be based on a sound theoretical model;
will allow adaptation of the model based on the characteristics of the
organization.
The maturity model development process by Mettler [62] will be used to develop a
maturity model. The maturity model will be based on the general practitioner
information systems (GPIS) model by [74] and on previously developed maturity
models. The research on the development of situational maturity models by [61] will
be used to create configuration of the model. The “situativity” is seen as ability of the
model to be filled in with relevant factors for the given company [61]. Mettler and
Rohner [61] use an example of the hospital procurement department, in which
different forms of coordination (e.g., outsourced, strategic network, centralized
sourcing of single hospitals, etc.) revealed importance of different factors. For
example, if coordination form is outsourcing then the dimension “operations” is not
relevant for the hospital, since it is done by the service provider.
Therefore, research questions can be formulated in the following way:
1. Is there a maturity model in the information systems domain that has desired
properties (key terms definition, based on the established development
process and theoretical model, and has a situational aspect)?
2. If such a model can be found then we should explore whether we can adopt
similar approach to develop a situational model for e-business, otherwise we
should explore if it is possible to develop a situational model for e-business.
3. Will a developed model provide explicit recommendations for assessed
companies?
7
2. Methodology
Figure 1. Project development steps.
2.1. Methodology description The following methodology has been used to develop an e-business maturity
model (Figure 1): first, the comparison framework for maturity models has been
defined based on a classification system for information systems maturity models [60]
and the comparative framework for the e-business and e-commerce maturity models
[63].
Secondly, in order to answer the research question #1 and provide an input for
question #2, a number of maturity models that are related to the information
systems field, such as e-business, e-commerce, e-government, enterprise resource
planning, product lifecycle management, and business process management were
studied with use of the comparison framework.
A search strategy was developed to identify the literature related to the definition
and assessment of maturity models. The search was limited to the English literature
and was not limited by geographical parameters.
The primary computerized search was performed with use of Google Scholar
search engine. Relevant subject keywords “maturity model”, “stages of growth e-
business”, “capability maturity model”, “e-business model” were used to perform
search for relevant publications. Titles and abstracts of a selection were screened by
one reviewer for inclusion or exclusion before retrieving full-text version of the
publications. References of publications, similar articles and newer publications that
include current publication were also explored to establish that all relevant
Definition of the
comparison framework
IS maturity models
comparison
Definition of e-business
Development of the
situational maturity
model for e-business
Development of the
assessment tool
Validation
and
Verification
8
publications were included. Both journal articles and conference proceedings were
considered to be used in the research.
This step has been concluded with the identification of common patterns
among the different maturity models as well as a detailed study of the criticisms
associated with each maturity model. The result of this step was used to identify
shortcomings of currently proposed maturity models, which should receive special
attention during development of a new maturity model.
Thirdly, the field of e-business has been examined in order to define the
architecture of e-business and provide definitions of its components. This step is
necessary to make sure that everyone (e.g., consultants, company representatives)
who is involved in application of the maturity model will have the same view on the
e-business domain.
Fourthly, to explore the possibility to develop a situational maturity model
(question #2), the actual development of the situational maturity model has been
done based on the decision parameters for maturity model development [62], the
General Practitioner Information System model [74], and the study of previously
developed maturity models for e-business and e-commerce. Additionally, literature
research on the difference between e-business and e-commerce implementation in
small-medium sized companies and large companies has been conducted. This step
provided an overview of barriers and critical success factors for the e-business
implementation in small and medium sized enterprises and large companies.
Proposed situational maturity model for e-business and the overview of barriers and
critical success factors are used to answer the question #3.
Fifthly, after the definition of the situational maturity model for e-business
(SMME) has been completed, the assessment tool has been developed in the form of
a questionnaire.
Finally, the preliminary version of the SMME has been verified with experts
from the information systems domain. Based on their feedback, the SMME has been
improved and possibilities for the future research have been identified.
Execution of the project has been guided by the requirements for the
development of maturity models, which were defined by Becker et al. [7] and
described in detail in chapter 2.2 below.
2.2. Design science research approach In order to develop a situational maturity model for e-business we will follow the
development approach defined by Mettler [62]. The approach to the development of
the maturity model is based on the design science research [34]. Hevner et al. [34]
provided the description of the design science research and developed seven
guidelines for the design science research in information systems. He considered a
design process as “a sequence of expert activities that produces an innovative
product”. The design process consists of two sub-processes: building process, and
evaluation process. The outcome or the design artifact of the design process can be
represented in the forms of a construct (the language used to describe problems and
9
solutions), model (representation of the real world situation), method (the process of
solving problems), and instantiation (the implementation of the construct, method
and a model in the usable product). The rigor of the research in the design science is
“achieved by appropriately applying existing foundations and methodologies”.
Design science research is aiming to find innovative solutions for unsolved problems
or to provide more efficient and effective solutions for solved problems. Usually,
these problems are derived from the identified business needs. The seven guidelines
are defined as follows:
1. Guideline 1 “Design as an Artifact” - the goal of the design science research is
to produce usable artifact in the form of a construct, a model, a method, or an
instantiation;
2. Guideline 2 “Problem Relevance” - the research should conform to the goal of
the design science in developing solutions for important solved and unsolved
problems that serve the needs of a business;
3. Guideline 3 “Design Evaluation” - the evaluation methods, such as
mathematical methods, quality assessment, case studies, simulations and
others shall be used to evaluate the outcome of the research;
4. Guideline 4 “Research Contributions” - the research should provide
contributions in at least one of the three areas: design artifact, design
construction knowledge, and design evaluation knowledge. The criteria for the
artifact assessment is its accurate representation of the studied environment
(e.g., business or/and technological) and the feasibility of its implementation.
5. Guideline 5 “Research Rigor” - the research should make use of rigorous
methods for both building and evaluation processes. In the design science
rigor is achieved by using appropriate theoretical foundations and research
methodologies.
6. Guideline 6 “Design as a Search Process” - the way to build a solution is seen
as a search process, which makes use of available resources and actions, obeys
environment constraints and has a particular set of goals.
7. Guideline 7 “Communication of Research” - the research shall be presented in
an understandable way for both technical-oriented and management-oriented
audiences.
Becker et al. [7] adopted Hevner’s [34] guidelines to the development process of
maturity models as requirements for the development of maturity models. In total
Becker et al [7] define eight requirements:
Requirement 1 “Comparison with existing maturity” - the new maturity model can
be an improvement of an existing maturity model or the need for new maturity
model should be based on the comparison with existing maturity models. In this
project existing maturity models will be compared with use of the comparison
framework and a new situational maturity model will also be described in terms of
this framework;
10
Requirement 2 “Iterative procedure” - step-by-step development of the maturity
model. In this project this requirement is ensured by the application of the maturity
model development process by Mettler [62];
Requirement 3 “Evaluation” - iterative evaluation of assumptions and principles of
the new maturity model. This requirement will be satisfied by the involvement of
experts from the industry to evaluate the proposed maturity model;
Requirement 4 “Multi-methodological procedure” - derived from Guideline 5
“Research rigor”, states that research methods should be “well-founded and finely
attuned” [7]. This requirement will be satisfied by application of theoretically sound
maturity model development process by Mettler [62] and the GPIS model [74];
Requirement 5 “Identification of problem relevance” - demonstrate the relevance
of the proposed solution for researchers and/or practitioners. The relevance has been
discussed in the Introduction and Problem definition chapters; also the results of the
literature review are related to this requirement;
Requirement 6 “Problem definition” - before the actual design “the prospective
application domain of the maturity model, as well as the conditions for its
application and the intended benefits, must be determined” [7]. The problem has
been defined in chapter Problem and Research Questions and the prospective
application domain will be defined in a dedicated chapter;
Requirement 7 “Targeted presentation of results” - the presentation of the maturity
model should take into account needs of its users and the conditions of its
application. During the development of the project it will be defined whether the
model is oriented towards a management or technical audience;
Requirement 8 “Scientific documentation” - the development process of the
maturity model should be documented and include documentation for each step of
the development process, description of applied methods, results, and parties
involved. This requirement is essential to make a model comparable to other
maturity models. Presented report is the documentation on the development of the
situational maturity model and its results.
11
3. Related work
3.1. Maturity model comparison framework
Originally, the maturity model concept was developed from the stages of growth
theory by Nolan. The maturity model approach became very popular after the
development and diffusion of the Capability Maturity Model for Software
Engineering (CMM) that later was renamed to the Capability Maturity Model
Integration (CMMI). Since then many maturity models were proposed in different
fields, including information systems. In the field of information systems the
maturity model approach received a lot of attention and maturity models that deal
with different areas of information systems field were proposed, such as e-business,
e-commerce, e-government, enterprise resource planning, product lifecycle
management, and business process management. In order to compare them the
comparison framework shall be defined. Fraser et al. [25] studied a number of
maturity models and identified the following common elements:
A number of levels or stages;
A descriptor for each level;
A generic description of the characteristics of each level as a whole;
A number of dimensions or process areas;
A number of elements or activities for each dimension or process area;
A description for each activity as it might be performed at each maturity level.
Based on these elements the authors proposed to distinct three types of maturity
models:
Maturity grids (that contains text descriptions of activity at each maturity
level);
Definition of the comparison framework
IS maturity models
comparison
Definition of e-business
Development of the
situational maturity model for e-business
Development of the
assessment tool
Validation
and
Verification
12
Hybrids and Likert-like questionnaires (respondents are asked to evaluate
performance of some best practice in their organization on a scale from 1 to n.
Usually no additional description of each activity is provided, only description
of maturity levels);
CMM-like models (These models repeat structure of CMM where each
maturity level contains process areas, which are organized by common
features, that specify number of key practices, that should be implemented in
order to achieve a set of goals).
Mettler et al. [60] and Jones et al [as cited by Morais [63]] propose frameworks for
comparison and classification of maturity models.
Mettler et al. propose a classification system for information system maturity
models. Their research is based on the analysis of 117 papers related to development,
analysis and application of maturity models, stages of growth models or assessment
models. The classification systems consist of three dimensions and each dimension
contains a number of attributes. Based on the description of these dimensions given
by Mettler et. al. [60] Table 1 and Table 2 have been constructed.
The dimension general model attributes consists of attributes such as name,
acronym, source, targeted audience, year of publication and etc. These attributes
provide an overview of the maturity model (Table 1). Table 1. General maturity model attributes.
General Maturity Model Attributes
Name
Acro
ny
m
Prim
ary
so
urce
Seco
nd
ary
so
urce
Ad
dressed
to
pic
Orig
in
Au
dien
ce
Yea
r of
Pu
blica
tion
Access
Em
ph
asis
Nu
mb
er of
stag
es
Table 2. Maturity model design and maturity model use attributes.
Attributes
Maturity model design
Concept of maturity Composition Reliability Mutability
Pro
cess m
atu
rity
Ob
ject m
atu
rity
Peo
ple
ma
turity
Ma
turity
grid
Lik
ert-like
qu
estion
na
ire
CM
M-lik
e
Verifica
tion
Va
lida
tion
Fo
rm
Fu
nctio
nin
g
Maturity model
use
Method of application
Support of application
Practicality of evidence
Self-a
ssessmen
t
Th
ird-p
arty
a
ssisted
assessm
ent
Assessm
ent b
y
certified
pra
ctition
ers
No
sup
po
rting
m
ateria
ls
Tex
tua
l d
escriptio
n /
ha
nd
bo
ok
So
ftwa
re a
ssessmen
t too
l
Imp
licit reco
mm
en
da
tion
s
Ex
plicit
recom
me
nd
atio
ns
13
The dimension maturity model design consists of attributes such as concept of
maturity, composition, reliability, and mutability. These attributes give details on the
structure and the form of the maturity model. Concept of maturity is the focus of the
maturity model that can be process, object or people. The composition of the
maturity model refers to its design namely maturity grid, likert-like questionnaire or
CMM-like model. CMM-like models are the most complicated, because a number of
different scales might be used. Mutability refers to change in the maturity model due
to improvement in technologies, and development of new best practices. There are
two distinct aspects of mutability: form and functioning. Form mutability refers to
the model of the maturity model, the descriptions of maturity levels or dimensions.
Functioning mutability refers to the functionality of the model (e.g., scoring method).
The dimension Maturity model use refers to the application of the maturity model.
It consists of the attributes method of application, support of application, and
practicality of evidence. Method of application refers to the usage of the model for
the purposes of assessment. The model can be developed to use by the company itself
(self-assessment), to use for the assessment of the company by a third-party or for
usage by the certified practitioner (like CMMI). Support of application refers to the
provision of the materials on usage of the maturity model. There are three options:
no supporting materials provided, textual description is provided or specialized
software is provided. Attribute practicality of evidence refers to the type of
recommendation that can be derived from application of the maturity model. One
type is general recommendations with respect to goals and maturity levels (implicit
recommendations), the other type is explicit recommendations, when it is possible to
derive exact improvement activities that should be performed (Table 2).
This classification system was used by Lahrmann et al. [53] for the classification of
Business Intelligence maturity models.
Jones et al. [as cited by [63]] propose a comparative framework for the e-business
and e-commerce maturity models. Their model consists of eight elements:
perspective, development, emphasis, verification, barriers, focus, source, stages
(Table 18).
Development refers to the structure of the framework that can be linear or non-
linear. Frameworks with linear structure are linked to the staged representation of
the development. Non-linear frameworks do not use staged representation.
Emphasis refers to the business type that is identified in the framework. Barriers
refer to the identification of growth of e-business/ecommerce in the framework.
Focus refers to the scope of the model that can be ecommerce, e-business or might
not be specified.
The framework was used by Morais et al. [63] to compare number of
ebusiness/ecommerce maturity models.
Both frameworks share some common features such as origin (source) and
verification. The model of Mettler is generic for maturity models, while model of
Jones is more focused on e-business/ecommerce maturity models. They can be
combined in a way that Mettler’s model can be extended with attributes of
development, emphasis and stages from Jones’s framework. In this report we will
14
omit the access attribute. Therefore, the used maturity model comparison framework
consists of the three parts: maturity model design and maturity model use attributes
(Table 15), which are taken from Mettler’s [60] classification system for maturity
models, and general maturity model attributes (Table 16), which is the corresponding
dimension from Mettler’s [60] classification system for maturity models extended
with attributes of development, emphasis and stages from Jones’s framework [63].
Stages of growth theory
It is widely admitted [6,26] that Richard Nolan’s theory of Stages of growth is a
basis for maturity models development. Nolan applied stages theory to the use of
computers in organizations [65]. He observed that over time a computer budget (or
data processing expenditures) in companies has S-shaped curve (Figure 2), which he
divided into four parts:
Stage 1 (Initiation);
Stage 2 (Contagion);
Stage 3 (Control);
Stage 4 (Integration).
Stage 1 is characterized by acquiring computers by the organization. Reasons for
this are the need to increase effectiveness of administrative processes or the need for
computation. In stage 2 the organization is trying to utilize the capacity of the
computers. Also in stage 2 computer projects have lack of project control and lack of
budgetary control. The computer budget of the organization grows exponentially and
becomes management’s concern. In the stage 3 the management takes control over
computer budget and initiates planning tasks in all aspects of the computing
organization. Stage 4 is characterized by further refinement of the planning tasks.
The main characteristic of the stage 4 is rethinking of the computer role in the
organization. Even though computer budget is still growing, the efficiency of using a
computer resource grows faster.
Figure 2. S-shaped curve of Nolan's model.
For each stage he defined such tasks as control, planning, organizing tasks and sub
tasks. These tasks and sub tasks have different definition depending on the stage. For
lower stages most of them are not used or not formally described, while on higher
stages tasks and sub tasks have a formal definition (for example, policy or standard).
15
Later Nolan expanded his model to have six stages: initiation, contagion, control,
integration, data administration, maturity. In addition to the data processing
expenditure, he added four processes that can be analyzed in order to determine
organization’s maturity level with respect to IT use [26]:
Application portfolio. From usage of mainly financial and accounting systems
to the organization-wide management information systems.
Data processing organization.
Data processing planning and control. From internal focus to external focus.
The level of user awareness. From centralized data processing initiatives to
partnership.
According to Nolan during the earlier stages of growth information systems
management is focused in the technology itself. He identified a transformation point
after the completion of stage three. After this point, focus is shifting towards
management of the organization's data resource, usage of database technology.
Unlike Nolan, Earl argues that it is possible to define learning curves for different
information technologies that can be used in the organization. He defines five ITs
that can be assessed: data processing, database, micro computing, office automation,
telecommunications [as cited by [26]]. In his model, Earl focuses attention to the
stages of growth of information systems planning. He defines six levels and for each
level he defines set of factors: task, objective, driving force, methodological emphasis,
context, focus.
Galliers and Sutherland [26] extend Earl's model with additional factor - the focus
of planning. Galliers and Sutherland [26] argue that focus is changing during
maturation process - from focus on IS department to the organization-wide focus
and to the environment focus on high maturity stages.
Galliers and Sutherland [26] revised Nolan's model with the goal of creating a
model that would help organizations to define how to organize IS function and how
to develop the use of technology in the organization. With this goal in mind they
extended Nolan's model with the Seven S's framework. Elements of the Seven S's
framework are: strategy, structure, systems, staff, style, skills and subordinate goals.
For each stage of the model all seven elements of the Seven S's framework are
defined. The initial model was tested in interviews with senior executives of several
companies and based on their feedback refined. Galliers and Sutherland [26] note
that organizations are likely to have characteristics of different maturity levels with
respect to the Seven S's elements. Moreover, different departments of the same
organization may be at different stages of maturity. According to the revised model
maturation is most likely will be linear, because each stage provides a foundation for
the next stage (required set of skills, software setup, etc.). Another possible scenario
that the organization can go from higher stage of maturity to the lower stage due to
some events, therefore authors recommend to perform maturity assessment after
some periods of time ( e.g., annually).
16
CMM and CMMI
In the field of Software Engineering the Capability Maturity Model (CMM) and its
successor Capability Maturity Model Integration (CMMI) are most widely used
maturity models in application to software engineering field, as well as foundation
for another maturity models. The development of CMM started as a contract from
the Defense Department in 1984. In 1988 Watts Humphrey described the software
development process maturity framework that can help software organizations to
improve quality of their software products [37]. The framework consists of five
maturity stages or levels:
1) Initial;
2) Repeatable;
3) Defined;
4) Managed;
5) Optimizing.
Each stage has its own distinct characteristics. For example, in the Repeatable
level organization established basis for the development process: the development
team can repeat the process based on their previous experience. The issues that
company can face in this stage are connected to new software, new kind of project or
change in management. These changes can introduce high risks for the development
process.
For each of the maturity levels Humphrey outlines areas that should be improved
in order to achieve next level. On the highest maturity level he says that “the data is
available to actually tune the process itself” [37]. He mentions that at that time no
organizations were observed to have maturity level 4 or 5. The method of assessment,
which should be used with the software development process maturity framework, is
explained in [82].
The assessment methodology is implemented in form of the questionnaire. Questions
are organized in 3 categories and several sub-categories:
1. Organization and Resource Management;
1.1. Organizational structure;
1.2. Resources, Personnel, and Training;
1.3. Technology Management;
2. Software Engineering Process and Its Management;
2.1. Documented Standards and Procedures;
2.2. Process Metrics;
2.3. Data Management and Analysis;
2.4. Process Control.
3. Tools and Technology
The model and the assessment methodology were improved and then released as
Capability Maturity Model in 1993. The new model has more complicated structure
in a way that it defines the same five levels of process maturity, but also describes
each level (except level 1) in the following structure: each maturity level contains key
process areas, which “identify the issues that must be addressed to achieve a
maturity level”. Each key process area is organized by common features. The
17
common features are used to “indicate whether the implementation and
institutionalization of a key process area is effective, repeatable, and lasting”. In total
there are five common features defined:
1. Commitment to perform (e.g., establishing organizational policies);
2. Ability to perform (e.g., training);
3. Activities performed (e.g., establishing plans, monitoring work);
4. Measurement and analysis (e.g., obtaining measurements of performed
activities.);
5. Verifying implementation (e.g., audits by quality assurance).
For each key process area there is a set of key practices, which help accomplish the
goals of the key process area. They describe “the infrastructure and activities that
contribute most to the effective implementation and institutionalization of the key
process area”. Goals of the key process area denote “the scope, boundaries, and
intent of each key process area” [70].
In 2007 Capability Maturity Model Integration Version 1.1 was released as a
successor of CMM. This model can be seen as advanced version of the CMM. Unlike
CMM, CMMI covered disciplines of Systems Engineering, Software Engineering,
Integrated Product and Process Development (IPPD), Supplier Sourcing (SS).
Software Engineering and Systems Engineering embodied a basic model and IPPD
and SS as additional disciplines. The IPPD discipline is concerned with organizations
where concurrent engineering is used. The SS discipline is concerned with projects
where acquisition of software components and their integration is the primary way of
system development. In the structure of the CMMI key process areas were renamed
to process areas. There are 25 process areas in CMMI. Each process contains Specific
and Generic Goals. The Specific Goals consist of specific practices, which states
which practices are expected to be implemented in order to achieve the goal. The
Generic Goals consists of generic practices, that state which practices a company is
expected to perform in order to provide an infrastructure for establishing a
consistent performance of the specific practices of that process area from project to
project. In addition to staged representation of the maturity level, that was used in
CMM, in CMMI it is possible to use continuous representation. This representation
allows for an organization to represent maturity levels of each process area. This
representation cannot be used to compare maturity levels of different companies, but
allowed the company to assess its processes in order to choose improvement
activities [48].
Research on issues in CMMI implementation was done by [85] among Chinese
software development companies, by [78] among Australian companies and by [49]
among Malaysian companies. In all the studies, one of the main de-motivator in the
adoption of the CMMI was high cost. Another de-motivator for Chinese companies
was the increased complexity of processes that were created during CMMI
implementation. If a company has already adopted CMMI, it is still possible that the
company may encounter problems with its maturation. These problems were also
identified for Chinese companies:
Unwilling to invest more into CMMI implementation;
18
Path to higher maturity level is perceived to be difficult;
Negative experience with previous software improvement efforts.
Besides the above stated de-motivators, motivators for implementing CMMI were
found. Two major drivers are realization of the need for CMMI adoption by
organization itself or requirement from customer that the company should adopt
CMMI. One motivator that was especially relevant for small and medium companies
in China is government support.
For Australian companies, reasons for not adopting CMMI were a bit different. The
main reasons are, for small organizations (especially for companies with less than 20
employees), (1) CMII adoption is too time-consuming, (2) another software process
improvement methodology is implemented in the company and the company does
not see clear benefits of adopting CMMI. Study by [49] was aimed to replicate
research of [78] in a different country. The results of this study are consistent with
results of [78] and show similar reasons on why companies decide not to adopt
CMMI.
3.2. Comparison of IS maturity models
In previous chapter the origin of the maturity models and “the most well-known
maturity model” [60] were studied to understand the foundations of the maturity
model concept. In this chapter previously defined comparison framework will be
applied to a number of maturity models from different domains of the IS field.
E-business and E-commerce maturity models
McKay et al [45] proposed an e-business maturity model, named Stages of Growth
for E-Business (SOG-e model). It is based on the stages of growth model by Galliers
and Sutherland [26]. In the same way each stage is being described by the seven
indicators: strategy, structure, systems, staff, style, skills, and subordinate goals.
Definition of the
comparison framework
IS maturity models
comparison
Definition of e-business
Development of the
situational maturity model for e-business
Development of the
assessment tool
Validation
and
Verification
19
Maturity model was created by mapping the Internet based stages of growth model
onto the IS/IT stages of growth model. The model focuses on technological aspects of
e-business growth, because it takes into account internet commerce and IT maturity
in the organization. Authors do not provide explicit definition of e-business, e-
commerce or Internet commerce, from the text it follows that these terms are used as
synonyms.
The model describes six stages of e-business maturity:
1. No presence. Organization is not involved into e-business activities. Position
is to assess applicability of the e-business to the company's products or
services, gather information about e-business and about its implementation
by competitors. Business managers are concerned with costs and benefits of
the e-business implementation.
2. Static on-line presence. Company has a website where users can find
information about the company, about its products and/or services. At this
stage there is a one-way communication from company to users.
3. Interactive on-line presence. At this stage company make use of email or
online forms. Customers can order products or services after browsing the
website, but transaction cannot be completed online. Customers have to use
phone, fax or visit store to complete the transaction.
4. Internet commerce. Organization's information system evolved to acquire
capability of completing online transactions. Now orders and payments can be
completed online. Company's business processes are being influenced by e-
business activities. At this stage the integration between new front office
system and old back office system is limited, that lead to problems in
coordination between these two systems.
5. Internal integration. Better integration between front office and back office
systems has been achieved. IT portfolio of the company is being created, so
integration between IT projects of different departments is achieved.
Technologies such as data mining and data warehousing are implemented as
part of the enterprise information system.
6. External integration. At this stage business processes cross organizational
boundaries, leading to integration of information systems of several
companies. This can be characterized as creation of business networks. Also at
this stage there is a high level of alignment between business and IT.
According to this model it is possible that organization may be at different levels of
maturity in terms of use of traditional IS/IT and in terms of e-commerce. Authors
assume that organization should follow evolutionary or linear path, but it is possible
that organization may skip some level if required resources (skills, knowledge, etc.)
are somehow acquired.
The proposed model was validated using case study approach. Prananto et al. [71]
report case studies of three different companies, where e-business maturity model
was applied and feedback from company representatives was received. Overall
conclusion is that companies were able to map their current state and also their
progression to the e-business maturity model levels.
20
It is not clear how this model should be applied and by whom. As a supporting
material only textual description of each stage is provided, no questionnaire is
available. Thus it is only possible to derive implicit recommendations on
improvement activities.
Chan and Swatman [10] focused on the development of the business to business
(B2B) stages of growth model. Chan and Swatman [10] conducted literature study of
several stages of growth models and studied the development of the e-commerce in
one Australian company. Based on these, authors defined four maturity levels:
1. Stage 1. Initial e-commerce;
2. Stage 2. Centralized E-commerce initiative;
3. Stage 3. Looking Inwards for Benefits;
4. Stage 4. Global e-commerce.
Each maturity level has five dimensions of the e-commerce development:
Strategy;
Structure;
E-commerce technologies used;
Focus;
Personnel involved.
Chan and Swatman [10] assume that development of the e-commerce initiatives
goes from local (departmental) to inter-organizational focus. Testing of the model on
other case studies with companies from different domains, such as government,
transport, retail, finance and manufacturing, showed that the content of the
dimensions differs for different industries. For example in retail strategy on level 1
and 2 is cost cutting, while in manufacturing strategies on the same levels are
innovative services, competitive advantage, and improved services and flexibility.
The materials on how to apply proposed model are not included in the article and
it is not clarified who should apply the model. In terms of recommendations, the
authors do not provide explicit recommendations of the development of the e-
commerce initiative and it is not clear whether any recommendations can be derived
due to different contents of dimensions with respect to different industries.
Rao et al [72] proposed e-commerce stages of growth model for small and medium
sized companies. The model consists of four stages:
1. Presence - the company has a website, which is used to provide information
about the company and its products and/or services. The company uses e-
mail as a primary communication channel. There are no online
transactions;
2. Portals - the company introduces interactive communication channels, also
it integrates front-office ordering system with ERP system, so that
customers can receive information about the availability of the products. It
is still not possible to complete transactions online;
3. Transactions Integration - the company introduces online transactions for
both business partners and customers. The company aligned its internal
business processes, but integration of business processes with partner
organizations is in the early stages of development;
21
4. Enterprises Integration - the company integrated its business processes
with partner organizations, so that these companies can be seen as a
business network. The company integrated its e-commerce, SCM and CRM
systems. This stage is seen as the most mature level for e-commerce.
Each stage of maturity is defined only with a set of distinctive characteristics, so
each higher stage is built upon lower stage with additional characteristics. Rao et al.
[72] provide only description of each level, but do not outline any dimensions in the
model. Also the development process is not presented as a part of the publication, so
it is not clear how model has been created.
The special feature of the model lies in its recognition of barriers and critical
success factors for each stage of maturity. This feature improves the quality of
recommendations that can be derived from the model. The model has been validated
with use of case studies with a result that most companies are on the level of
Transaction Integration. For future work, authors mentioned the development of the
assessment tool.
Only model of Rao [72] provides definition of the e-commerce, while other
presented models do not explicitly define terms e-business, e-commerce, i-
commerce. An overview of the e-business/e-commerce maturity models can be found
in Table 19 and Table 20(shaded areas correspond to presented features). There are
three parts in the comparative framework:
General maturity models attributes. This part gives an overview of the
maturity model with use of attributes such as name, year of publication,
origin, targeted audience, number of stages, etc.
Maturity model design attributes. These attributes provide details on the
concept of maturity of the maturity model, the composition of the maturity
model, reliability (validation and verification), and mutability of the maturity
model.
Maturity model use attributes. This part provide details on the suggested way
of the application of the maturity model (whether it is self-assessment or
third-party assisted assessment), provided support of the maturity model (in
the form of the handbook or special software), and the type of
recommendations that can be received from the maturity model (whether
recommendations are explicit or implicit).
E-government maturity models
The domain of e-government is considered to be similar to the e-business domain:
Davison et al. [16] noted that business and government initiatives in the field of e-
business and e-government have similarities and differences. Both business and
government will need to achieve high level of interdepartmental communication in
order to provide simple (one access point to all services) and personalized service.
While e-business is aiming at 24/7 availability of services, e-government should also
aim at the same availability since users will expect it. Both government and business
are in competition, for example, for investment of capital. The main difference
between business and government is in loyalty of their users. While business uses
22
Customer Relationship Management (CRM) to retain customer, government is
focused on encouraging citizens to use digital services instead of traditional paper-
based.
Davison et al [16] made an attempt to define a maturity model for the
implementation of e-government. Authors study the notion of e-government and its
relation to traditional government. In order to define a new e-government maturity
model authors studied several proposed e-government maturity models and a
strategic alignment model. They defined new model as alignment-based maturity
model.
The distinctive feature of the developed model is the possibility of different
pathways from traditional government to e-government. Model includes five
maturity levels:
1. Level 1 “eGovernment rhetoric”.
2. Level 2:
a. Strategic vision;
b. eGovernment vision;
c. Systems focus.
3. Level 3:
a. Strategic plan;
b. IT planning gap;
c. eGovernment automation.
4. Level 4 “eGovernment integration”;
5. Level 5 “eGovernment Transformation”.
In practice it means governments of different countries may use different
strategies to achieve higher level of e-government maturity. Authors applied this
model to cases from different countries and defined their maturity level. It is not
discussed whether the model can be changed and how and it is only possible to
derive implicit recommendation on improvement activities based on the descriptions
of maturity levels. The model has the same weak point as many maturity models: it
can define present level of e-government, but cannot provide guidance on how to
reach higher levels.
Some papers define weak points of proposed e-government maturity models and
try to define an improved version of the model. In the study of [3] it was noted that
previously proposed e-government maturity model focuses on technological aspects
of e-government, while literature research on e-government shows that topics of
effectiveness and efficiency are often discussed. The proposed e-government
maturity model, which was named Public Sector Process Rebuilding (PPR) model, is
shifting focus from the technology aspect to the customer aspect of e-government. In
customer oriented maturity model indicators are representing activities that are
beneficial to customers. The higher the maturity level of e-government, the more
benefits are given to customers.
Authors extensively discuss notion of e-government and maturity models in the e-
government domain. After literature review authors constructed e-government
maturity model that has four stages:
23
1. Stage 1 “Cultivation”. Adoption and use of intranet in the government.
Some elements of self-service, for example, some forms in PDF format
that can be downloaded from web site, filled in and then returned via e-
mail or web site to the government.
2. Stage 2 “Extension”. This stage characterized by the development of the
end-user web interface.
3. Stage 3 “Maturity”. Government implemented personalized web interface.
All necessary information can be found through the website without
redirection to other governmental web sites. Key priority is the self-
service, only some exceptional requests cannot be processed through web-
site.
4. Stage 4 “Revolution”. It is possible to acquire information on the progress
of case handling.
Authors do not provide details on the development and application of the
proposed model, so verification and validation of the model are not clear. Method of
application is also not clear, it is not mentioned whether government should assess
itself or some third-party shall do it. The model does not provide explicit
recommendations on the progression from low maturity to high maturity stages. It is
only possible to derive implicit recommendations from the description of the stage.
Iribarren et al.[41]developed hierarchical, multi-dimensional capability maturity
model for assessing e-government capabilities and maturity of public agencies
named eGov-MM. Authors identify e-government as “coupling of a government’s
need to improve quality and efficiency of government information and services
delivered to citizens and business by public agencies, and the acknowledgement that
ITs have a relevant role to reach such an objective”. The model is based on the best
practices of implementation, measurement and assessment of e-government
strategies that were obtained through a survey among following countries: United
Kingdom, USA, Australia, Canada, Sweden and South Korea. The structure of the
model was derived from study of CMMI and ISO/IEC 15504. The content of the
model was derived from combination of above mentioned best practices and a
literature study of relevant e-government maturity models. The model consist of four
leverage domains: eGov strategy, IT Governance, Process Management, People and
Organization, and each of these domains include a number of key domain areas. For
each level of maturity, a number of KPA’s are defined. Authors mention that web-
based assessment tool was developed. It is not clear whether it is possible to receive
recommendations or they should be derived based on the defined sets of KPA.
An overview of the e-government maturity models can be found in Table 21 and
Table 22.
Enterprise Resource Planning
Holland and Light [35] built maturity model use of Enterprise Resource Planning
systems. The model focuses on the ERP system of the organization as an object of
maturity. Authors based the research on the literature review about stages of growth
model and study of the use case data. In order to obtain use case data they developed
a questionnaire for semi-structured interviews. Main topics of the questionnaire are:
24
1) Strategic use of IT;
2) Organizational Sophistication;
3) Penetration of the ERP system;
4) Vision;
5) Drivers and Lessons.
The scoring method and sample questionnaire are not included as part of the
publication. In this research three maturity levels were indicated:
● Level 1 - Legacy systems are currently in use. Beginning of the implementation
of the new ERP system;
● Level 2 - Post implementation usage of the ERP system, its adoption to
company’s business processes.
● Level 3 - Extension of the core ERP functionality to cover strategic goals of the
business (for example, implementation of the CRM functionality).
The model was validated by conducting literature study and application of theoretical
models and verified on case studies data. Authors do not discuss possible evolution
of the maturity model, so the mutability of the model is not clear. In terms of
application support and recommendations, no supporting material provided and no
explicit recommendations can be derived from the model. The definition of the ERP
systems is not explicitly highlighted in the publication.
Authors claim that this model can help organizations to assess their ERP strategy
and identify its issues.
An overview of the ERP maturity model can be found in Table 23 and Table 24.
Product Lifecycle Management
Definition of a maturity model for the implementation of Product Lifecycle
Management (PLM) system was done by Batenburg et al [6]. They used the following
definition of PLM: “PLM is the activity of managing a company’s products across the
complete lifecycle, from the early stages to the final disposal or recycling of the
product”. A problem with PLM implementation in companies was identified - since
PLM affects wide range of processes in companies it is causing organizational
problems. Based on this observation it was concluded that there is a need for a
stepwise approach in PLM implementation or a model that can serve as a roadmap in
PLM implementation. PLM Maturity model has been built on concepts of stages of
growth, capability maturity model and business/IT-alignment. As a basis for PLM
maturity model a Capability Maturity Model was chosen with some adaptations.
Same as CMM five levels of maturity were defined, with the main difference that
maturity grows sequentially from local, to accidental use of PLM concept to
departmental, to organizational and cross-organizational levels.:
1. Level 0. No use of PLM in the organization.
2. Level 1. PLM systems are used locally, in some projects. No formal policy about
PLM Is established.
3. Level 2. PLM system is in use on the departmental level.
4. Level 3. Organization adopted PLM system organization-wide.
5. Level 4. PLM system crossed organization’s border and integrated with
information system of supplier. External customers can work with PLM system.
25
Questionnaire that was developed for the model contains 40 questions that are
organized in five dimensions:
Strategy and policy;
Monitoring and control;
Organization and processes;
People and culture;
Information and technology.
The application of the model is assumed to be done by the company itself with
involvement of several managers. In terms of recommendations, authors suggest
PLM roadmap process that company should use in order to create PLM roadmap.
This process consists of five steps: assessment of current PLM maturity and
alignment, comparison with another companies (benchmarking), definition of
desired PLM maturity and alignment, identification of items that should be
improved, and definition of PLM roadmap.
Authors used several Dutch companies to evaluate application of the developed
model. Also developed model was used by [31] to assess maturity of a number of
Dutch companies (mostly from High Tech industry) and by [32] in application to two
Finnish manufacturing companies. Pels and Simons [[31]] used adapted version of
the questionnaire: questions on PLM usage per department and perceived company
performance were added. Kärkkäinen et al. [32] used feedback from companies in
order to identify weaknesses and improvement points in PLM maturity model. They
noted that it is important to include customer-oriented questions, for example how
companies include customer feedback in their PLM system.
An overview of the PLM maturity model can be found in Table 25 and Table 26.
Business Process Management
In the field of Business Process Management, a number of maturity models,
academic and non-academic, were developed. In spite of the publication of the OMG
Business Process Maturity model formal specification in 2008 [66], new maturity
models are being developed.
In recent a comparative study [58], a total of 37 Business Process Maturity Models
(BPMM) were compared from the point of IT-orientation of different elements of
business process life cycle. Elements considered are: process modeling, process
deployment, process optimization, process management, organization’s culture,
organization’s structure. As a result it was concluded that views on the role of IT
differs among BPMM’s for different elements of the business process life cycle. Based
on this observation, the choice of BPMM for a company should be aligned with its
strategy and goals.
Problems of the BPMM were noted by [55,56]. They argue that many BPMM
models were developed using principles of software engineering and its applicability
to the business process management is not clear. Also authors mention problems of
the proposed models namely: complex structure, no indication of actions that should
be taken in order to achieve higher level of maturity, oversimplified scoring
methodology. They proposed a BPMM model that was based on principles of
26
Capability Maturity Model Integration (CMMI), ISO 12207 and 15288 standards.
Later [56] presented Value based Process Maturity model (vPMM) that extended
BPMM with notion of a business value. Authors added organization’s capability to
create business value as one of indicators of business process maturity. In order to
decide key process areas for the maturity model with notion of business value,
principles of value chain were applied. The proposed model resembles the structure
of the CMMI: it has 5 maturity levels, 23 key process areas, 52 specific goals and 5
generic goals.
Authors do not discuss validation of the model and method of application, also no
supporting materials are provided. So it is only possible to derive implicit
recommendations from the application of the model.
Authors highlight the following original characteristic of the proposed model:
Ability to guide organization to the implementation of its business values by
obtaining capabilities and achieving goals.
Implementation of business processes towards achieving business values.
An overview of the vPMM can be found in Table 27 and Table 28.
Summary The usage of the comparative framework, defined in chapter 3.1 allows us to
compare maturity models of the same domain and also between different domains.
In the domain of e-business, none of the three [10,45,72] publications provided
explanations of terms such as e-business, e-commerce, internet commerce, so it is
hard to analyze the models with respect to their exact domain. From the analysis of
publications it can be concluded that often the terms e-business and e-commerce are
used as synonyms. In the same way Holland and Light do not provide a definition of
ERP. Lee shortly introduces BPM, but do not provide an exact definition. In other
domains authors provide definition of the key term, especially in the e-government
domain the term e-government extensively discussed. The presence of the definition
of key terms would eliminate respondents who do not fit the definition. As will be
described in the next chapter there are many definitions of e-business and e-
commerce, therefore if the company does not fit the definition adopted in the
particular maturity model, then the model is not applicable for this company.
From the analysis of presented models it can be seen that the discussion of the
maturity model development process in detail is not included in the publications, so
verification is not clear. None of the models discussed the evolution of the maturity
model and possibilities of its change due to new technologies or best practices. The
method of application of these models is also not clear. Only McKay et al. [45] suggest
that companies can assess their own maturity. Recommendation-wise all models
provide only implicit recommendations on improvement activities. Only the model of
Rao et al. [72] explicitly provides barriers and success factors for each stage of
maturity, which can improve the quality of provided recommendations.
Most authors suggested that developed maturity model can be used for self-
assessment, for some publications [10,56,72], method of assessment was not clearly
stated. It can be concluded that these models are not developed well enough and do
27
not have such popularity as CMMI that require certified practitioners for the
assessment of maturity. Moreover the support of application usually not provided at
all. Only one model mentioned that web-based assessment tool is available.
We can conclude that features of the maturity models depend on the development
process, rather than on the domain. From domain to domain the same patterns are
observed:
No discussion on the evolution of the maturity model;
Lack of supporting materials;
Suitability to provide only implicit recommendations;
Lack of verification or/and validation;
Non-specific emphasis of the maturity model.
Based on these observations it can be concluded that there is a need to improve the
quality of maturity models in several ways:
First, explicit definition of the development process, so that different maturity
models can be compared and their foundations will be clear.
Second, the models should be more personalized or adaptable to situations of
different companies hence eventually leading to better recommendations. The
discussion on the evolution or mutability of the maturity model should be
included in the supporting materials.
Third, the models should be accompanied by instructions materials and by
tool, which can be used to carry out the assessment and to provide the final
result.
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4. E-business In order to understand the domain of e-business it is necessary to examine the
classification space of this domain, its architecture and define its key components.
4.1. Definition The complex phenomena of e-business have been studied for more than a decade
and many definitions of e-business have been created. Amit and Zott [2] created
several definitions of e-business. One definition that examines companies from
financial perspective: “E-business firm is one that derives a significant proportion (at
least 10%) of its revenues from transactions conducted over the Internet.” With the
specification that companies which derive all of their revenues from e-business are
called “pure-plays”. And another definition that is used when no data about revenues
can be obtained: “E-business company is the company to which at least two trade
publications such as Wall Street Journal and the Financial Times referred to as an e-
business, or a pioneer or early innovator in the virtual market space. “ [2].
Evans [22] provided definition of e-business that takes into account the aspect of
integration of business processes: “An E-business is the electronic integration of all
operations within a business that link with customers, suppliers, partners, and
employees. In addition to these components the definition also includes marketing,
order entry, lead identification, stock tracking, order fulfillment, distribution, and
sales support.” Similarly, definitions of Zhu et al [86], Papazoglou and Ribbers [69],
and Hubner and Elmhorst [36] define e-business as conduction of automated end-to-
end business transactions along the value chain (including suppliers, customers and
other organization in the value chain) by using the Internet.
Grefen [29] provides stricter definition of e-business and also introduces the time
scope of the e-business: “Electronic business is conducting inter-organizational core
business activities in dynamic collaborations, such that these activities are enabled
Definition of the
comparison framework
IS maturity models
comparison
Definition of
e-business
Development of the
situational maturity
model for e-business
Development of the
assessment tool
Validation
and
Verification
29
by the integrated use of information technology for both communication and
processing of information.” [29]. The time scope is represented by “dynamism” in
collaborations. According to Grefen [29] there are four possible time scopes: static
(permanent or long-lasting collaboration), semi-dynamic (collaborations are
changed periodically), dynamic (parties can be different for each order), ultra-
dynamic (parties can change during the execution of an order).
4.2. Structure It can be observed from analysis of e-business and e-commerce maturity models that
evolution of the e-business in the organization starts with establishing a web site that
provide static information about company, and its products and services. Then the
company establishes a means for e-commerce such that users can execute
transactions online, and track the status of their orders. Thereafter, the company
optimizes internal processes and integrates front office e-commerce systems with
back office systems, e.g. ERP. When integration is finished the company expands its
business processes beyond organizational boundaries thereby integrating business
processes with partner organizations. Therefore, the structure of e-business can be
seen as implementation of different technologies that enable e-business, such as e-
commerce, ERP, CRM, Knowledge Management, SCM, BI [9,46,69]. The generic
architecture of e-business that has been adapted from Papazoglou (Figure 7), Chaffey
(Figure 5) and Kalakota (Figure 6) is showed in Figure 3.
Figure 3. Generic e-business architecture.
The ERP system is a management information system that integrates and automates
business practices such as manufacturing, logistics, distribution, inventory,
accounting, etc. [69]. Companies may use standalone, independent software to
automate a limited set of activities, for example standalone accounting software that
is used to automate accounting activities and is not integrated with other information
systems. The approach of using independent systems to automate a limited set of
activities can lead to the so-called “islands of automation” situation. This situation is
characterized by duplication of data in different information systems that automate
activities in the same business process and problems of data integrity and
synchronization of activities [69]. In order to create an enterprise-wide information
system, the company shall integrate these independent applications. The goal of the
integration is to provide a single source of data in the company. The ERP is seen as a
foundation for the implementation of e-business [4]. The ERP system is regarded as
30
back-office system, because customers and suppliers are not directly involved. In
contrast to the ERP, CRM system is regarded as front-office system. According to
Fayerman [23] CRM is a “process and technology that can translate customer
information into customer knowledge”. Chen and Popovich [11] and Pan and Lee [68]
view CRM not only as technology solution but as a business strategy “providing
seamless integration of every area of business that touches the customer - namely
marketing, sales, customer service and field support - through integration of people,
process, and technology” [68]. Fayerman [23] distinct three types of CRM
implementation: operational, analytical, and collaborative. Operational CRM system
in aimed at “automation of horizontally integrated business processes involving
front-office customer touch points”. These processes automate tasks that are done by
internal users of the company. Components of operational CRM are sales force
automation, marketing automation, service automation [40]. Collaborative CRM
introduces interfaces and processes that are used to interact with customers. They
include e-mail, discussion forums, video conferences, chats [23]. The goal of the
Analytical CRM is to analyze data that was gathered by operational and collaborative
CRM systems. Analytical CRM includes data warehouse, data marts, reporting and
analysis components. The classical CRM does not include data of collaborative CRM
and online customer behavior in analytical CRM. Pan and Lee [68] provided
definition of E-CRM, which is CRM system that includes data about online behavior
of the customer, such as click stream (“a sequential series of page view requests”
[77]), shopping cart usage, and shopping pattern. Taking into account this definition
we will use the term CRM, but will enhance it with E-CRM capabilities and therefore
analytical CRM should include data from collaborative CRM.
The structure of analytical CRM is similar to the architecture of the Business
Intelligence. Business Intelligence is “a process of turning data into information
and then into knowledge” [28]. BI consists of two main aspects: data acquisition and
data analysis or getting data in and getting data out. Getting data in refers to the
creation of the data warehouse. It involves moving data from a set of, usually
heterogeneous, systems into an integrated data warehouse. Data warehouse can
consist of several data marts, which are data warehouses with more narrow scope
(e.g., functional area, geographic area, or department). Getting data out is a process
of delivery of meaningful data that can be easily used in the decision-making process
and can include activities such as reporting, querying, and analytics [81].
E-commerce is regarded as part of e-business and has a more narrow scope. Grefen
[29], Hubner and Elmhorst [36], and Papazoglou and Ribbers [69] provide similar
definition of e-commerce. They see e-commerce as subset of e-business with focus on
buying and selling products and services online. This is a classical view on e-
commerce that has the following characteristics:
customers are able to make orders online and pay for them online;
customers can track the status of their orders online and also the company can
notify them about changes in the status of the orders.
Based on the features of classical e-commerce and the web 2.0 trends, a new term
social commerce is being created. Web 2.0 refers to the “collection of
31
technologies, business strategies, and social trends” [64]. It is also considered to be
more interactive and dynamic, since users can participate in the content generation.
The participation feature enables collaborative content creation and assist in
gathering of collective intelligence. Other features of web 2.0 include geo-tagging,
blogs, podcasts, tags, social networks, wiki, ranking, and recommender systems [15].
Taking into account these features it can be seen that the process of buying and
selling online is being changed. Now customers can collaborate during the process of
buying or during the process of searching for relevant information about products or
services needed. Ickler et al. [38] define the focus of social commerce on
“interpersonal relations (recommendations, feedbacks, information, etc.) that are
influencing a business transaction before, while or after it happens”. Before business
transaction customers search for the relevant information, ask for feedback from
other customers of the service or owners of the products, they may receive
recommendations based on their profile or purchase history. Customers may
customize the design of products or change configuration prior to the purchase (for
example, Dell provides customers with ability to change the configuration of the
laptop). After the purchase, customers can share their experiences, write reviews
(with use of blogs or wikis) and also help other customers to solve their problems
[15,38]. The phenomenon of Web 2.0 has been considered recently in the e-business
research. Only Jacobs and Nakata [42] made an attempt to update Earl’s e-business
stages of growth model [20]. They provided a clear description of first stages
(External communications, Internal communications, Social commerce), but last
stages were not developed so clearly (Social business, Social Enterprise).
Since part of the e-business is integration with suppliers the SCM system is part
of the e-business structure. Stock and Boyer [80] made an attempt to analyze
definitions of SCM and propose a complete definition of SCM. Based on the analysis
of previous definitions authors proposed the following definition of the SCM: “The
management of a network of relationships within a firm and between interdependent
organizations and business units consisting of material suppliers, purchasing,
production facilities, logistics, marketing, and related systems that facilitate the
forward and reverse flow of materials, services, finances and information from the
original producer to final customer with the benefits of adding value, maximizing
profitability through efficiencies, and achieving customer satisfaction.”[80].
Papazoglou and Ribbers [69] noted that the key component of the SCM is information
sharing, which is supported by the information technology. Lockamy III and
McCormack [39] built SCM maturity model based on the supply chain operations
reference framework (SCOR) and the concept of business process orientation. They
defined five levels that describe the degree of business process integration in the
supply chain. We will use this model to measure the maturity of SCM in the company
because it can be easily mapped to the five stages of the GPIS framework.
We have examined several information systems that companies can use to support
their business processes and, as was noted before, some activities might be
supported by standalone applications. These standalone applications can be
purchased as out-of-the-box solutions or developed internally (that are usually refer
32
to as “legacy systems”). The implementation of e-business project requires
integration of information systems and business processes between several
companies that may have “islands of automation”, legacy systems and information
systems that use different standards. The concept of Enterprise Application
Integration (EAI) has been introduced to overcome challenges connected to
integration of such kind of information systems. The EAI is seen as a collection of
tools, techniques, technology, and a strategy “that enable applications to interoperate
effectively” [69]. The goal of EAI is to integrate disparate information systems, their
operational behavior, business rules, and data into new business processes. Erasala
et al. [21] put e-commerce (e-business) as one of the drivers for EAI implementation.
As it was discussed before, e-business implies integration of internal information
systems and also integration of information systems between companies. If the
company has several legacy systems and standalone applications then e-commerce
and e-business implementation will not be efficient, even integration of ERP system
and other standalone applications (purchased or legacy systems) is considered to be
a difficult task [21]. Another reason to use EAI is to make use of data that is stored in
different information systems, while a project of enterprise information system is
being undertaken [57]. There are different approaches to EAI ranging from interface
redesign to the migration of the application to a new platform [21]. Papazoglou and
Ribbers [69] distinct two types of application integration - internal enterprise
application integration and inter-organizational application integration, which they
call e-business integration. This distinction is made based on the different
characteristics of inter-organizational and intra-organizational business processes.
Business process orientation deals with shifting focus from department and
functions to business processes. The classical definition of the business process is “a
collection of activities that take one or more kinds of input and create an output that
is of value to the customer” [50]. In the context of e-business the definition of the
business process has been adapted. Knorr and Rohrig [51] define an e-business
process “as a business process in the context of e-business”. They provide examples
of e-business processes such as ordering and payment of books, CDs or flight tickets
over the Internet. Grefen [29] and Papazoglou and Ribbers [69] consider e-business
process as a special kind of a business process with the following features:
e-business processes are inter-organizational;
e-business processes are complex that is they involve “a number of e-business
functions performed by two or more parties”.
Another important concept of organizational development is knowledge
management. This concept includes not only software tools to capture knowledge
and analyze data, but techniques that help to “disseminate knowledge within an
organization” [9]. The knowledge itself can be classified into two types: explicit and
tacit [52]. Explicit knowledge is codified in documents and databases and expressed
in forms such as procedures, and manuals. Tacit knowledge is the experience and
wisdom of individuals. This type of knowledge is not available to everyone in the
organization and not formally codified. One of the goals of knowledge management is
33
to capture tacit knowledge and convert it into explicit knowledge. Knowledge
management includes following processes [27]:
Acquisition process - the process of capturing existing knowledge or creating a
new knowledge through collaboration and innovation.
Conversion process - this process includes knowledge organization,
structuring, and distribution.
Application process - the process refers to the use of knowledge.
Protection process - the process of knowledge protection refers to prevention
of theft of knowledge and secure storage within the organization.
There are also other activities that regard as part of the e-business architecture such
as e-procurement and human resource management (HRM). E-procurement refers
to the set of activities (purchase request, authorization, ordering, delivery, and
payment) that are aimed at obtaining items from a supplier with use of Internet
technology [9,69]. Since our model focuses on B2C companies we will omit these
systems (HRM, E-procurement) because they do not directly involve customers.
Classification space
In the classification space it is widely accepted to use involved parties and type of
objects that are involved in e-business activities [12,29]. In the parties dimension it is
possible to identify 3 main types of parties and 9 types of interaction between them.
The parties are:
Consumer - a private person, individual who is not acting as a commercial
entity;
Business - a commercial organization (regardless of type and size);
Government - a government organization or owned by government non-profit
organization [29].
The most frequent types of interactions between parties in e-business are B2C,
B2B and C2C [12,29]. Example of B2C is a web shop, like Amazon.com. The example
of B2B is interaction between business and suppliers. The example of C2C is online
auctions, such as eBay.
Table 3. Interaction between different parties in e-business.
From / To Consumer Business Government
Consumer C2C C2B C2G
Business B2C B2B B2G
Government G2C G2B G2G
The object in the e-business can be product or service. Parties can exchange only
physical products or only digital products or services as well as any combination of
them.
In the research on e-business, scholars often distinct between small and medium
sized enterprises and large companies. Since definitions of SME vary in different
countries we will use definition provided by the European commission [13].
34
According to this definition SME should have less than 250 annual work units and
less or equal to 50 million euro annual turnover or instead of the turnover total
annual balance sheet should be less or equal to 43 million euro. Annual work unit
counted as number of full-time employees (each full-time employee counts as one
annual work unit) and part-time employees (each part-time employee and full-time
employee, who did not work for the whole year, counts as fraction of the annual work
unit).
35
5. Situational E-business Maturity Model
5.1. Maturity model development process Mettler [62] studied and compared different design methodologies of maturity
models development and based on this study he created a list of development phases
and related decision parameters, which should be taken into account during the
development of the maturity model (Table 4).
Table 4. List of phases and decision parameters of maturity model development.
Phase Decision
parameter Characteristic
Define scope
Focus/Breadth General Issue Specific Issue
Level of analysis/depth
Group decision-making
Organizational
considerations
Inter-organizational considerations
Global and societal
considerations
Novelty Emerging Pacing Disruptive Mature
Audience Management-
oriented Technology-
oriented Both
Dissemination Open Exclusive
Design model
Maturity definition
Process-focused
Object-focused
People-focused Combinatio
n
Goal function One-dimensional Multi-dimensional
Design process Theory-driven Practitioner-
based Combination
Design product Textual
description of form
Textual description of form and functioning
Instantiation (assessment tool)
Definition of the
comparison framework
IS maturity models
comparison
Definition of e-business
Development of the
situational maturity model for e-business
Development of the
assessment tool
Validation
and
Verification
36
Application method
Self-assessment
Third-party assisted
Certified professionals
Respondents Management Staff Business partners Combination
Evaluate design
Subject of evaluation
Design process
Design product
Both
Time-frame Ex-ante Ex-post Both
Evaluation method
Naturalistic Artificial
Reflect evolution
Subject of change
None Form Functioning Form and
Functioning
Frequency Non-recurring Continuous
Structure of change
External/open Internal/exclusive
The development process consists of four phases: define scope, design model,
evaluate design, and reflect evolution. The define scope phase includes decision
parameters that define high-level description of the model and also setup initial
boundaries. First, the focus of the model should be set. This can be a general or a
specific issue. For example, adoption of e-business can be considered as a general
issue and adoption of e-business among small retail companies in developing
countries is regarded as a specific issue. Next the level of analysis shall be
determined. Analysis can be made on the group level (e.g., group involved in some
project), on organizational level, on inter-organizational level (e.g., collaboration
between different companies), and on the global level. Novelty refers to the
classification of maturity model as innovation. There are four types of innovation:
emergent (new products and services), pacing (products and services that spread
fast, but do not have commonly accepted design, standard, etc.), disruptive (new
products and services with commonly accepted design, standard, etc.), mature (well-
established products and services). Next decision parameter is the audience, which
describes the targeted group of professionals in the organization. The maturity model
can target primarily the management of the company or technical specialists or both
groups. The last decision parameter of the scope definition phase is the
dissemination of the maturity model. The dissemination refers to the distribution
and access to the maturity model. The author may distribute the maturity model free
of charge and do not limit access to it. For example, maturity model developed as a
scientific project. On the other hand, maturity model can be developed by consulting
company for use as a consulting tool. In this case access to the maturity model will be
limited to the clients of the company.
The next phase is the design of the actual maturity model. First decision
parameter is the maturity definition. The maturity model can measure the maturity
of object, process, people or combination of them. If the maturity model is object-
focused it means that the maturity model measures features of this object. For
example, ERP maturity model [35] measures extent to which features of the ERP
system is implemented in the organization. Process oriented maturity models focuses
on the assessment of activities and best practices in business processes. For example,
37
CMMI focuses on the assessment of the implementation of best practices in the
software development process. People oriented maturity model assesses the adoption
of best practices that are related to the development of employers’ skills. The
example of this kind of model is the People Capability Maturity Model [14]. Maturity
model can also focus on several of these characteristics. E-business maturity model
by McKay [45] takes into account staff skills and adoption of information systems in
the organization. Therefore, this model has a people-focused and object-focused
maturity assessment. Next decision parameter is the goal function. The goal function
depends on the maturity definition. If the maturity model focused only on object or
process or people then goal function is one dimensional. For example, CMMI focuses
on software development process and its goal is to improve the efficiency of this
process, therefore the goal function is one dimensional. The model that has multi-
dimensional goal function is e-business maturity model by McKay [45]. As we
explained before, this model defines maturity of process and people and hence its
goal function can be defined as multi-dimensional. The decision parameter Design
process determines the mode of maturity model development, whether it is theory-
driven, based on practice or a combination of them. The choice of design process will
influence methods of research, for example literature study in case of theory-driven
design process or expert panel and focus groups in case of practitioner-based design
process. The decision parameter Design product will determine the final product of
the design process. This can be pure textual description of the model (Fraser et al.
[25] call it a maturity grid), or description of the model and explanation of its
application, or assessment tool (in the form of a spreadsheet file, web-based tool or a
questionnaire). Next it is important to decide the method of maturity model
application. There are three main ways of maturity model application: first, self-
assessment, when company employees apply the maturity model to their own
company. Second way is the assessment with third-party involvement (for example,
external consultants). Third way is the application of maturity model by certified
professionals, as it is done for CMMI assessment. The last decision parameter of the
model design phase is the definition of respondents for data collection. For data
collection it is possible to target management staff, technical staff, and business
partners or involve a combination of different respondents.
The next phase is the evaluation of the design. In this phase the subject of
evaluation, timeframe, and evaluation method are being defined. As a subject of
evaluation the design process (the way of the maturity model development) or the
design product (the maturity model itself) or both of them can be used. Then the
point in time for evaluation shall be set. The evaluation can take place before the
actual development of the maturity model (ex-ante evaluation of the design process)
or after development (ex post evaluation of the design process), before the
application of the maturity model (ex-ante evaluation of the design product) or
before it (ex post evaluation of the design product). Also different combinations of
subject of evaluation and time frame are possible. Next decision is concerned with
method of evaluation. It is possible to evaluate the maturity model on the case study
(naturalistic way) or with use of experiment (artificial way).
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The last phase in the development of the maturity model concerns with the
evolution of the maturity model. The domain of the maturity model is subject to
change and a maturity model also is a subject to change. With the emergence of new
technologies and new best practices the content (the form) of the maturity model can
be changed. If new technologies allow developers to recognize a new maturity level
then the functioning or the method of maturity determination will be changed. For
example emergence of Web 2.0 technologies influenced the appearance of the social
e-commerce, which can be distinguished from classical e-commerce. For the
evolution of the maturity model it shall be determined whether change is continuous
or rare. The last decision parameter is the structure of change. It determines whether
third-parties can make changes in the maturity model or only the developer of the
maturity model can make changes.
We described a parameterized maturity model development process [62] that
consists of four phases: define scope, design model, evaluate design, and reflect
evolution [62]. This development process will be used to create a situational maturity
model for e-business.
5.2. Define scope The first parameters to decide are the focus of the maturity model, level of
analysis, novelty, audience, and dissemination. The SMME model will be focused on
the implementation of e-business in organizations with focus on B2C (Business-to-
Consumer) form of the e-business. This includes organizations that are
implementing e-business (e.g., traditional business transforming to e-business) and
purely e-business organizations. Therefore, we can say that this definition of focus
can be considered as focus on a general issue, rather than on a specific issue. The
level of analysis is clear from the definition of e-business and study of previous e-
business maturity models – it is inter-organizational considerations. The novelty
aspect of the SMME model can be seen as pacing and disruptive. The maturity model
as an artifact does not have a common standard, it is mature in software engineering
field, but other fields may have only a recommended specification, like Business
process maturity model. But mostly maturity models are not recognized as a
standard. The domain of e-business also does not have a common standard. There
are efforts to create such standards and specifications for e-business processes
(RosettaNet and ebXML are the most developed examples). From management point
of view there are well established business models for e-business such as e-retail, but
new business models are being invented [29]. Taking into account the current
situation in the domains of e-business and maturity models we can conclude that
SMME model can be regarded as pacing (the maturity model concept is being
adopted for different domains, new e-business business models are being invented)
and disruptive (in both maturity models and e-business domains recommended
specifications and some standards are present).With regard to the audience, the
SMME is more aimed at management of the company because it is based on the
GPIS model, which “assists managers in determining the organization’s state of
readiness prior to IS investment” [74]. The model will provide guidance on the
39
development of the e-business initiatives in the company. Technology aspect will be
omitted because linkage to the particular technology will decrease the lifetime of the
maturity model. The SMME model is a research project without affiliation to some
particular company, the dissemination of the model is open. The Define scope
decisions are summarized in Table 5.
Table 5. Summary Define scope.
Decision
parameters Characteristic
Focus/Breadth General issue Specific Issue
Level of
analysis/Depth
Group
decision-
making
Organizational
considerations
Inter-
organizational
considerations
Global and
societal
considerations
Novelty Emerging Pacing Disruptive Mature
Audience Management-
oriented
Technology-
oriented Both
Dissemination Open Exclusive
5.3. Model design The SMME model is based on the General Practitioner Information Systems (GPIS)
model [74]. The GPIS model is aimed to assess readiness of the organization in terms
of the proposed dimensions for the successful implementation of a particular IS
project. It consists of four dimensions:
IT infrastructure;
People;
Process;
Work environment.
The IT Infrastructure dimension refers to the physical IT assets and to the software.
The People dimension concerns the required staff, responsibility for the IS/IT
development and with required skills. The process dimension has the same meaning
as process dimension from the CMM model and describes a number of levels and
their respective best practices. The dimensions Work Environment is related to the
assessment of the strategy, culture and business/IT alignment.
Description of levels in the GPIS model
The GPIS model describes six stages of maturity and each stage consists of the
description of each dimension. In order to provide more details on the GPIS model
the short description of each dimension will be provided. The dimension IT
infrastructure is defined as follows:
Level 1: The scope of the information systems is accounting and finance in the
company. Information systems software is being developed by the company
itself or purchased as out-of-the-box solutions. This software is not integrated
and represented by independent software packages. The decision about
acquisition of software is made on the group level;
40
Level 2: The scope of the information systems is broader - not only financially-
oriented systems are being implemented, but other operational areas are
starting to be covered (e.g., human resource management, sales). The software
is still independent, so that different groups in the organization may have
software with similar functionalities. Centralized source of data for reporting
has been introduced, but mainly the data is scattered between different
independent information systems.
Level 3: Information systems cover most operational processes, but very little
part of them is integrated. Information systems department is being
introduced on this level.
Level 4: Information systems cover almost all operation processes and they
are being enhanced with decision support systems. Information systems
department provides centralized coordination of the use of IS in the
organization. Information systems are connected and their functionality is
available throughout the whole organization.
Level 5: Information system of the organization is being modified to process
data from external information systems (e.g., IS of suppliers). This
modification introduces interoperability problem between internal and
external information systems. Information systems for senior management,
such as decision support systems and executive information systems are being
developed on top of the information system for operational processes.
Level 6: Information system of the organization is connected to the
information systems of the partner organizations. The organization developed
and implemented knowledge management system.
The dimension People is defined in the following way:
Level 1: There is no manager and no staff responsible for information systems
in the organization. Only technical staff and programmers who develop
software and support network and hardware of the organization are
presented. There is no training concerning information systems provided for
the staff. The skills are being acquired individually and they are of a technical
nature;
Level 2: In addition to the programmers and technicians, the role of system
analyst is being introduced. The IS staff in responsible for analysis and
elicitation of the user requirements. The manager who is responsible for
information systems in the organization has been appointed. Users and IS
staff are beginning to acquire the relevant training.
Level 3: The roles of database administrators and IS planners are introduced.
IS manager becomes more technically-oriented. The organization gained
considerable technical expertise in information systems development,
analysis, information security, etc. The need for the development of the
project management expertise is being recognized by the organization.
Level 4: The IS manager has a middle management position. The role of
business analyst is being introduced. The quantitative performance indicators
for IS staff have been introduced. IS staff is required to have technical
41
business skills. All employees of the organization are involved in documenting
and capturing their knowledge and experiences with IS related activities.
Level 5: The IS manager has a senior management position. The core staff is
identified and some expertise is being outsourced. The IS department is
recognized as an integral part of the organization. The combined role of
Business planners and IT planners is being created and is responsible for the
strategic planning of IS development in the organization.
Level 6: The IS manager becomes a member of the board of directors. The
organization uses outsourcing and staff may be shared with partner
organizations.
The dimension Work Environment is defined as follows:
Level 1: The organizational structure, which is responsible for IS, is not
defined. The senior management has little concern about potential
development of the IS in the organization and the head of the organization is
involved in low-level decisions concerning IS (e.g., purchasing). There is no
connection between technical IS staff and users.
Level 2: For senior management the IS of the organization is responsibility of
the technical staff, while the goal of management is to minimize expenses on
the IS. The IS department is being introduced, but it does not have enough
authority to control the IS of every department. Separate departments are still
responsible for their own IS development.
Level 3: The senior management recognizes IS as a mean to reduce expenses.
IS management becomes centralized and organizational wide. IS architecture
policy, standards for e-email, suppliers are introduced throughout
organization.
Level 4: The senior management considers IS as a key component for the
functioning of the organization. The IS department is well-established and it
works in partnership with users. The goal is to integrate all the different
groups and departments.
Level 5: The senior management recognizes IS as a key component of the
competitive strategy. Centralized IS department provide organization-wide
communication systems, servers. Higher integration among different groups
has been achieved.
Level 6: The senior management considers IS as “the single most critical
factor for the organization”. There is a unity of views on the IS
implementation in the organization. The IS department works on
optimization of the collaboration between different groups.
The dimension process is based on the CMM and defined in the generic way;
Level 1: The process cannot achieve specific goals and there are no base
practices defined;
Level 2: The scope of the work, services and/or products to be created are
identified. Base practices, which are needed to produce services and/or
products, are performed, but they may not be documented as a part of the
process.
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Level 3: In order to perform the process, an organization established a specific
policy. People are trained to have necessary skills for performing the process.
Adequate resources for performing the process are provided and the process is
being monitored, reviewed, and its performance is being evaluated.
Level 4: The organization established a set of standard processes that are
being improved over time. The organization collects measures and other
information that can be useful for future process improvement.
Level 5: The organization established quantitative parameters of the process
and the process is being controlled with use of the statistical methods.
Quantitative parameters are based on the business objectives of the
organization, and identified customer needs. A set of sub processes is selected
and measures of their performance are being collected and analyzed. The
performance of the process can be predicted.
Level 6: The organization can identify root causes of problems in the process
and address them with appropriate process improvement techniques. The
results of the improvements are also monitored and measured. Quantitatively
managed process can be adapted to the changed environment (e.g., change in
business objectives). The organization established a culture of continuous
process improvement.
For more detailed description of the GPIs model refer to[74].
In order to verify that the GPIS model can be used to assess organization’s e-
business/e-commerce capabilities we listed dimensions that were taken into account
in other e-business and e-commerce maturity models and mapped them to the GPIS
model. The comparison is presented in Table 29. Colored cells correspond to the
matched dimensions and the caption of the cell corresponds to the original title of
the dimension (if there is no caption then the name is the same as in the column
“Dimension”). The comparison revealed that the GPIS model contains three most
widely included dimensions of the e-business/e-commerce maturity: IT
infrastructure, People, and Work Environment. The processes dimension was found
only in the e-business maturity model from Atos consulting [5]. The structure
dimension that was found in three maturity models refers to the organizational scope
of the maturity, i.e. project level, departmental level, and inter-organizational level.
In the GPIS model, the structure dimension is not distinguished as a separate
dimension.
On the basis of the comparison it can be concluded that the GPIS model can serve
as a basis for the e-business maturity model.
Structure of the SMME
In order to highlight important components of the e-business implementation and
provide better understanding of the maturity assessment, the dimensions of the GPIS
model are refined with respect to the architecture of e-business. In the IT
infrastructure dimension, CRM, ERP, and Web 2.0 are presented as sub-dimensions.
In the Process dimension, SCM is highlighted as a sub-dimension. It is possible
because we use a process-oriented view on the SCM. In Work Environment
43
dimension, the strategy is presented as a sub-dimension. Therefore, the structure of
the SMME is as follows:
IT Infrastructure;
o CRM;
o ERP;
o Web 2.0;
Processes;
o SCM;
People;
Work Environment;
o Strategy.
From the structure of the SMME model and the definition of its dimensions the
maturity definition is focused on process maturity, object maturity
(implementation of the e-business features), and people maturity, hence it is a
combination of the above listed types of maturity definitions. Following the maturity
definition, the goal function is multi-dimensional, because the SMME model has
combined maturity definition. The development of the model is based on the
research that was done in fields of e-business, e-commerce, and on the topics of
maturity models development. Literature study has been conducted and gaps in
maturity models development and in developed e-business and e-commerce maturity
models were identified. The SMME model itself is based on the theoretical model
and the e-business definition and architecture are based on scientific literature. The
feedback from practitioners will be used to validate the model. Therefore, the design
process of the SMME model is theory-driven. With regards to the design product
we will provide the description of the maturity levels, method of assessment and an
assessment tool in form of the questionnaire. The situational aspect is represented by
exclusion of the SCM dimension for companies that provide only digital products
and/or services. Since the main task of the SCM is collaboration with vendors in
terms of logistics and material procurement and we assumed that e-procurement is
the part of the SCM, we will not measure the maturity of the SCM dimension for
companies that provide only digital products and/or services.
Definition of the SMME maturity levels
Based on the literature study of e-business, its definition and architecture, and the
GPIS model, the following levels of the e-business maturity were defined:
On level 0, the company does not perform transactions online. Typically this
stage is referred to as static online presence, or brochure ware, or web presence
[9,20,22,45], because customers can only obtain information about the company and
its products and services from the web-site, but interaction is limited to emails and
traditional ways, such as telephony. This level is not regarded as e-commerce or e-
business level, but it is needed to determine the initial position of the company on
the way to the e-business maturity.
On the level 1, the company implemented a classical e-commerce solution that
allows customers to perform transactions online. In previous works this stage usually
44
happens after the company established online presence [9,20,45]. It does not have
Web 2.0 functionality, such as customer reviews, and recommendations. Only the
functionality of ordering and paying online is available. On this level the company
started to use e-commerce capabilities, but e-commerce is regarded as one more
information system, and, therefore, management sees it as a technical project. E-
commerce is not integrated well with other internal information systems, but e-
commerce staff managed to recognize best practices for e-commerce and can
formulate specific goals for the e-commerce project.
On the level 2, the company extends its e-commerce project with Web 2.0
functionality. This level is seen as an improvement over classical e-commerce setup
and it extends the classical e-commerce with Web 2.0 features. From the historical
perspective this level should appear later. From the point of view of the current
opportunities, companies may aim to include Web 2.0 features from the beginning of
the e-commerce/e-business project. Since the model is aimed to assess the current
state of the e-business in a company, we will analyze the model from the current
opportunities angle.
On the level 3, the goal of the company is to integrate different information
systems and provide an infrastructure to implement company-wide data analysis
capability. After the integration of internal information systems, the next step (level
4) is to integrate information system with partner organizations and optimize
business processes. On the level 5, the integration of information systems with
partner organizations and development of the business intelligence system lead to
change in organizational culture and ability of the company to create new business
models and best practices.
Definition of the dimensions of the SMME
IT infrastructure
Level 0
The IT infrastructure is presented in the form of small, independent financial
packages that are being developed internally or purchased. Decision on their
acquisition is made on the group level and based on the group needs as perceived by
the group management (for example, project group). The CRM may not be used at
all or presented in the form of simple contact management applications used by
some sales representatives. The company may use customer surveys to obtain some
feedback from customers. The customer data may not be analyzed or simple analysis
with use of spreadsheets or statistical packages is performed [79]. The ERP
functionality is covered by legacy systems or purchased out-of-the-box solutions (for
example, accounting packages) [69]. There is no use of Web 2.0 at this level or ad
hoc use by some employees who may set up web page for the company in social
networks [42].
Level 1
The IT infrastructure is mostly developed in the financial area, while business
applications for other functions are being developed or purchased, such as human
45
resource management, warehouse management. Business applications that are used
in different departments may overlap in functionality and data. The e-commerce
solution and standalone business applications are not integrated and there is no
centralized storage of data in the company. Only data, which is used for reporting, is
being gathered from different business applications and stored in one place. The
company may implement operational CRM in order to automate some marketing
and sales tasks. The company may integrate business application of the financial
domain to act as ERP system or deploy an ERP system that covers this functionality.
This ERP system is extended with order fulfillment functionality to be able to process
orders from the e-commerce system. Web 2.0 tools are being used internally, for
example internal wiki to capture knowledge among employees.
Level 2
The IT infrastructure has been developed further and now information systems
(or one information system) cover most of the operational areas. Central IT function
has been created in the company to manage IT infrastructure. The e-commerce
capability has been enhanced with Web 2.0 features such as recommendation
system for the customers. The recommendations can be based on the previous
purchase history of the customer or on the customer’s profile. The company may use
social networks and micro blogs to post news and special offers. Customers are
provided with functionality to rate products and write reviews.
Level 3
In the IT infrastructure dimension, the information system of the company which
represents integration of previously independent systems into organization-wide
information system covers all required operational processes. The ERP system is
now integrated with front-office systems, such as CRM and e-commerce. Also the
business intelligence system is being implemented. The implementation of the
business intelligence is supported by the implementation of the analytical CRM
system. Along with integration of information systems, Web 2.0 tools used
internally are being integrated. The data that was gathered from the Internet is also
used for analysis.
Level 4
The IT infrastructure, in particular the information system of the company is
extended with functionality of external integration. In line with it, ERP, CRM, SCM
and other information systems are being fully integrated. The external integration
may cause problem of interoperability between internal and external information
systems. The business intelligence system has been improved to provide functionality
that is aimed at strategic decision making. This improvement is characterized by
extensive use of data mining and data warehousing technologies. The CRM system
has been upgraded to collaborative CRM. The use of Web 2.0 tools became inter-
organizational. Now tools that were used internally in the organization are being
shared with partner organizations.
46
Level 5
The IT infrastructure has been developed to support integration with external
information systems and interoperability problems have been resolved. This level of
integration enables efficient use of strategic business networks.
Processes
Level 0
The company does not recognize any best practices and best practices are being used
in ad hoc ways (for example, by some individuals).
Level 1
The company recognizes base practices in e-commerce. Managers formulate specific
goals regarding e-commerce, and clearly define which products or service shall be
delivered. Basic SCM processes are defined and documented.
Level 2
The company established organizational policy for planning and performing e-
business/e-commerce activities, its objectives and requirements, and also plans for
performing e-business/e-commerce activities. The company has assigned the
responsibility for performing the e-business/e-commerce process and adequate
resources for it have been allocated. Staff involved into e-business/e-commerce
project is being trained when needed. Since the plans are established now it is
possible to monitor the e-business/e-commerce process against the plan and take
corrective actions. The conformance of the e-business/e-commerce process and
established requirements and objectives is being checked and non-conformance has
been reported.
Level 3
The process dimension is characterized by establishing a description of the e-
business process and by collecting various data (such as measures, measurements,
results, improvement information) from performing the e-commerce/e-business
process. In line with integration strategy the SCM is now regarded as a strategic tool
and the collaboration between intra-organizational functions, vendors and customers
is being established in the form of teams, which have common SCM measures and
goals.
Level 4
The company established quantitative objectives for the e-business process about
quality and process performance based on customer needs and business objectives.
After this the performance of one of the sub processes of the e-business process has
been stabilized in order to determine its ability to achieve the established
quantitative objectives of quality and performance. This stage may require business
process re-engineering in order to align business processes to new situation of
integrated organizations. The integration of internal and external business processes
lead to the cooperation in SCM at the process level. This change allows using
advanced SCM practices such as collaborative forecasting and planning with
47
customers and suppliers. The SCM process has been stabilized, so that its
performance is predictable and process improvement goals which were set by SCM
teams can be achieved.
Level 5
From the process perspective, continuous improvement of the e-business process
has been established and the root causes of problems in the e-business process are
being identified and corrected. The SCM aspect is characterized by creation of multi-
firm supply chain and multi-firm SCM teams that share common goals, processes
and authority. The culture of the SCM became customer-focused and collaborative.
The performance and reliability of the SCM process are being measured and
organizations share the improvement activities.
People
Level 0
The people dimension is characterized by ad hoc skills acquisition and no IT
managers. IT staffs are presented by programmers and technicians. Skills that IT
staffs possess are of technical nature and specific to individual business applications.
Level 1
In the people dimension, the company made the IT manager responsible for the e-
commerce. Users are provided with the necessary training to develop skills to work
with new business applications that are being developed or purchased. A number of
IT staffs have skills required for IT projects in the company and they receive special
training.
Level 2
In the people dimension, the IT manager became more technically-oriented. The
development of the IT skills led to considerable technical competence of the IT staffs.
In addition to the development of technical skills, the project management skills are
being developed too. IT staffs have a good understanding of the business and also of
the capabilities, potentials and limitations of IT.
Level 3
Regarding the people dimension, the e-commerce/e-business services area is
created and a manager with middle management status is appointed. The
performance of an e-commerce/e-business staff is being quantified and measured
against performance baselines. In addition to the technical knowledge, e-
commerce/e-business staffs are now required to have business knowledge. All users
involved in e-commerce/e-business process are also required to participate in
capturing and documenting their knowledge and experiences with e-commerce/e-
business related work. Mentoring is established among e-commerce/e-business
staffs.
48
Level 4
In people dimension, the change in inter-organizational collaboration led to the
change in the formal structure. Now the organization may have an e-business
manager with senior management status or Chief Information Officer (CIO) with e-
business management as his responsibility. The roles of e-business planners and
business planners were combined to plan the strategic use of the e-business for the
organization.
Level 5
The people perspective is characterized by use of outsourcing and staff sharing
between partner organizations. The person responsible for e-business in the
company is also a member of the board of directors.
Work Environment
Level 0
Management is not aware of potential benefits of e-business/e-commerce and
there is no strategy for e-business/e-commerce.
Level 1
In the Work Environment dimension, the management of the company
considers e-business/e-commerce projects as a responsibility of technical staffs. The
main concern of management is to minimize the expenses on e-business/e-
commerce projects. The strategy for e-commerce is being developed, but it is not
aligned with business strategy.
Level 2
In the Work Environment dimension, management recognizes e-business/e-
commerce as a way to reduce costs in the company. An organization-wide e-
business/e-commerce architecture policy and standards have been established. The
e-commerce strategy is now integrated with marketing strategy and the main goal
of the e-commerce is to expand customer base.
Level 3
At this stage e-commerce is being recognized as a valuable part of the organization
and e-commerce strategy has been integrated with the business strategy.
Level 4
From the management point of view, e-business becomes part of the competitive
strategy of the organization and it’s also integrated with the business strategy.
Management sees e-business as an essential part of the company.
Level 5
The strategy of the company now includes goals such as formation, maintenance
and exploitation of strategic business networks. The concept of strategic business
networks characterizes “the relationship formed between multiple firms linked
together in support of a common goal” [17]. The approach to form strategy is
changing from just strategic planning to strategic thinking and planning. Strategic
49
planning refers to the use of previously determined strategy, while strategic thinking
focuses on the creation of innovative strategies. Innovative strategies are put into
action through the analytical process of strategic planning [33]. This level of e-
business maturity in the organization also facilitates the development and use of
knowledge management. From the management perspective, e-business became the
single most critical factor for the organization. (Work environment dimension)
Management and technical staff share a common view on e-business in the
organization.
5.4. Barriers and Critical Success Factors Usually maturity models do not discuss potential problems for each level, but
discuss what should be done on this level. Only Rao et al. [72] explicitly discussed
barriers for e-commerce development in his e-commerce maturity model. In order to
provide better recommendations for companies it is necessary to discuss barriers and
critical success factors for e-business development. We have defined the e-business
maturity model regardless of the size of the organization, although SME and large
companies have differences that influence the development of the e-business in the
company [8]. We will provide an overview of the research on barriers and critical
success factors for e-business and e-commerce development in SME and large
companies and then link it to the five stages of the SMME model.
Kartiwi and MacGregor [47] list the unique characteristics of SME and divide them
into internal and external features. Scupola [75] studied B2B e-commerce adoption
among Danish and Australian SME companies from technological, organizational,
and environmental perspectives. Dubelaar et al. [18] followed a generic view on the
on the adoption of the e-business in B2C type of companies. They list common
critical success factors, and internal and external barriers to e-business adoption.
Firstly, we will list common differences between SME and large companies. Usually,
these factors are being classified into internal factors, which are related to the
decision-making process, available skills and resources, and external factors, which
are related to the characteristics of the market, customers and partners [24,47].
Internal factors that affect the adoption of the e-commerce and e-business in the
SME are following:
Awareness of the e-commerce/e-business adoption benefits by the
management of the company. Usually the owner of the company represents
management of the company and has the highest influence on the decision-
making process. The decision to adopt e-commerce/e-business might solely
depend on the one person [8,47]. As mentioned by Dubelaar et al. [18] failure
to adopt e-business “stem from organizational issues like top management
short-sightedness and long-standing internal barriers”;
Availability of the IT expertise in the company. Lack of IT expertise and lack of
awareness of e-commerce/e-business benefits might lead to such problems as
selection of appropriate vendor of e-commerce/e-business solutions for the
company, resistance to e-commerce/e-business adoption by the staff.
Bardonaba-Juste et al. [8] note that “IT knowledge is an important factor in
50
the adoption of new technologies and increases the levels of a firm’s
technology adoption”;
Naturally, SMEs have fewer resources (financial and human) than large
companies. These constraints make it difficult to carry complex e-
commerce/e-business projects. SME might be reluctant to invest in e-
commerce/e-business project due to uncertainty in returns on this investment
[8,47,75].
Other internal factors that can be found in the literature include lack of IT training in
the company, conservative orientation of the management, fear of change, separation
of e-commerce activities from the business of the company [8,47,75].
The other type of factors that affect e-commerce/e-business adoption in the
company is external factors, which are related to the characteristics of the market,
customers and partners. These factors include:
Very narrow orientation on the market by SMEs, due to competition from
bigger companies, therefore they rely on few customers and have product-
oriented, rather than customer-oriented strategy [47].
SMEs have lower bargaining power compared to bigger companies. This and a
reliance on a few customers make them dependable on vendors and customers
in e-business adoption [18].
Based on these developments and proposed e-business situational maturity model
we can list important factors for the each level of the maturity model.
Level 0
Level 0 has the most obstacles to overcome: management shall recognize the
importance of e-commerce for business and initiate e-commerce projects. This
means that management and/or owner of the company should be aware of the e-
commerce benefits and challenges. In addition to that, staffs shall be educated about
e-commerce use. For SME, the additional challenge is to invest money into e-
commerce projects, since there is a risk that this investment might not be successful.
For the implementation of the CRM system, the company should recognize the
importance of being a customer-oriented; this is especially relevant for SMEs who
have positioned themselves as niche players. Another important task is to recognize
the value of knowledge sharing and retention in the company. This would facilitate
the internal adoption of Web 2.0 tools and the development of the process
orientation. In addition, the development of the process orientation in the company
can be facilitated by educating management about its benefits. The responsibility for
the e-commerce project shall be assigned to someone like IT manager. The company
shall ensure that IT staff has required skills to operate with current information
systems and to execute e-commerce project. This might be harder for SME because
they have fewer resources to provide necessary training. It is important to establish
e-commerce implementation strategy in order to monitor its progress.
Level 1
When the company has established basic e-commerce features, the next step is to
enhance then with Web 2.0 capabilities. This step again requires education of
51
management about possible benefits of these features. It can be difficult to achieve
this in companies with conservative management, which sees e-commerce as a
possibility to make sales over the Internet. If decision has been taken to adopt Web
2.0 features then it is necessary to create an e-commerce/e-business adoption plan,
which will allow monitoring the progress of the e-commerce/e-business adoption.
The staff that is responsible for e-commerce/e-business project should receive
training on benefits, limitation and capabilities of IT and e-commerce/e-business in
particular. This task is harder to implement for SME, than for bigger companies.
SMEs can try to implement mentoring in the organization if they have a specialist in
this field.
Level 2
After the implementation of the front office systems, the company might notice that
there are some flaws in the system, for example customer orders are taking too long
to fulfill, they might get lost or contain mistakes [20]. This situation points out that
there is a poor integration between front-office and back-office systems. In order to
successfully integrate different systems, companies should establish centralized IT
department, with middle manager as its head. This department shall be also
responsible for the implementation of the e-business project. The process dimension
requires the establishment of measures. They can be seen as key performance
indicators for e-business. In literature, several classifications of measures for e-
business were proposed. Sibgh and Byrne [76] propose financial performance
indicators and operational excellence measures. Financial performance indicators
refer to such measures as increase in return on investment due to e-business,
increase in revenue per employee, etc. Van Grembergen and Amelinckx [30] propose
to use the balanced scorecard to measure e-business projects. They developed a
generic e-business balanced scorecard that consists of four parts: customer
orientation measures, business contribution measures, operational excellence
measures, and future orientation measures. Business contribution measures deal
with costs and profits and include indicators such as operational cost reductions,
direct online contribution to revenue, etc. The customer orientation measures
include indicators such as number of complaints from customers, percent of
customer placing repeat orders, score on customer satisfaction surveys, etc.
Operational excellence measures are used to indicate quality of the fulfillment
process (level of shipping errors, on-time delivery of products and services),
availability of the e-commerce/e-business system (e.g., downtime), and security of
the system (e.g., quality of the e-commerce/e-business system according to security
audit reports). The future orientation measure describe the quality of e-commerce/e-
business staff and partners through indicators such as number of training days per
employee, employee satisfaction rate, number of releases per year, number of new
customers, etc. Dubosson-Torbay et al. [19] propose four classes of measures for e-
business, which they adapt for two business models: online auction and online
retailer. The four classes of measures are:
52
Production innovation (number of customers, number of customer orders,
number of languages of the website, number of products offered, percentage
of online orders shipped within time frame, etc.);
Customer relationship (number of new customers, average order size,
percentage of cancelled online orders, etc.);
Infrastructure management (percentage of documents used by workers
available online, number of transactions per day, etc.);
Financial aspects (number of products sold, advertising revenues, revenue
growth, net profit or loss, market capitalization, etc.).
The company can adopt relevant key performance indicators for its e-commerce/e-
business projects. It can be seen from key performance indicators that e-
commerce/e-business measures are connected to the key performance indicators of
the company itself, it means that e-commerce/e-business should be recognized as
part of the company and it should be included into the business strategy. SCM shall
be also recognized as a strategic tool, which is necessary for smooth execution of
business processes. On this stage SMEs may encounter a problem with the
implementation of analytical CRM and decision support systems due to lack of
internal expertise and unwillingness to spend resources on external consultants.
Level 3
Getting from level 3 to level 4 requires integration with partner organizations by
means of information systems integration. The problems of this transition deal with
information security, interoperability of information systems and business process
re-engineering. From the information security perspective the company should make
sure that the partner organization can only access data that related to it, but not data
that is related to other companies. For example, if the company has several suppliers
for similar components then the supplier should be able to access data related to its
orders, but not data about orders to other suppliers. For SMEs, it will be more
difficult to solve this problem due to lack of competence in information security.
Related barrier for SME is lack of trust in information technology by owner of the
company, for this reason the e-business project may not be approved [24]. The
problem of interoperability between different information systems requires
investment in the development of the information system. The problem of business
process re-engineering is more complicated. Both Large and SME companies may
lack this competence unless they established a dedicated function in the company
that would be responsible for the improvement of business processes. The company
can hire external consultants to pursue the business process re-engineering project.
In this case, the company should select appropriate consulting company for its
business.
Level 4
The highest level of the e-business maturity is represented by the adoption of
knowledge management in the organization and by the creation of the strategic
business networks. The study of knowledge management adoption in SMEs and large
organizations revealed that due to lack of resources for strategic planning in SMEs
53
the use of knowledge management in these organizations is less effective than in
large organizations [59]. On the other hand, resources are not the most important
factor for the adoption of knowledge management in SMEs. According to Wong and
Aspinwall [84], management support, culture, and strategy are considered to be more
important factors for the adoption of knowledge management. This implies that the
owner/management of SME should be aware of benefits of knowledge management
and provide support in its implementation. As for strategic business networks, it was
pointed out that they emerge when organizations recognize lack of resources and
decide to cooperate with other organizations [1]. In addition to that, the cooperation
between SMEs and large organizations usually happens on the project level, because
of the limited resources of the SMEs[83].
5.5. Application method
The assessment tool
The maturity model is intended for use internally in the organization in order to
define current situation (as-is) and derive measures that should be taken to achieve
desired state (to-be). The assessment tool is presented in form of the questionnaire
that has been derived from the proposed situational maturity model for e-business.
In total there are 67 questions in the questionnaire, which are divided in the
following sections:
General questions (questions for company introduction);
Model questions
IT Infrastructure;
CRM;
ERP;
Web 2.0;
Processes;
Definition of the
comparison framework
IS maturity models
comparison
Definition of e-business
Development of the
situational maturity model for e-business
Development of the
assessment tool
Validation
and
Verification
54
SCM;
People;
Work Environment;
Strategy;
Based on the answers, the maturity of the e-business in the company can be
determined. All questions are codified with unique question code. Each level of the
maturity has corresponding set of answers. Levels of the maturity are built one on
top of the other. Questions G_04 (What kinds of products are provided by the
company?) and G_05 (What kinds of services are provided by the company?) are
used to determine what kinds of products and services the company offers and this
will determine whether SCM dimension is applicable to this company or not.
Question G_01 (How many employees are in your company?) is used to classify the
company as SME or large according to the definition of SME and large companies
used in the European Union. The overall maturity of the e-business in the company
will be determined as minimum level of maturity achieved in any sub-dimension.
Questions also have dependencies or conditions to be asked. For example, if question
ST_01 (Does your company has established e-commerce/e-business strategy?)
answered as NO, then question ST_02 (What is the level of development of the e-
commerce/e-business strategy?) shall be hidden as non-relevant.
For each dimension and sub dimension the set of maturity levels and
corresponding set of answers have been defined (Table 31, Table 32, Table 33, Table
34, Table 35, Table 36, Table 37, Table 38, Table 39). These sets were defined based
on the description of each dimension and sub-dimension in the situational maturity
model for e-business. The questionnaire is presented in Table 51
Example application
In order to elaborate more on the application of the model, we will provide an
fictitious example application of the model to some company. Let’s take a company
that offers hosting services for software development projects. We will focus on the
company GitHub (https://github.com/), which offers services for collaborative
development of the software projects. Firstly, we will proceed with general questions.
There are about 80 employees in the company1, the industry is web-hosting, software
development; the company operates worldwide with headquarters in the USA. The
company offers a product for businesses called GitHub enterprise, which is the
version of the GitHub system that can be installed locally. Therefore, it can be
classified as a digital product. The company also provides digital service such as web
hosting for software development projects, which include features of code sharing,
wiki, bug tracker. Based on this information we conclude that GitHub can be
classified as SME that provides digital services and digital products. Next we will
proceed to the model questions. The answers to the general questions are
summarized in Table 6
1http://kotp.visibli.com/share/B9kHg6
55
Table 6. General questions summary.
Question Situation Matching answer
How many employees
are in your company? ~80
The company is classified as
a small company.
What is the industry of
your company?
Software development, web
hosting
What is the country that
your company operates
in?
Worldwide
What kinds of products
are provided by the
company?
GitHub Enterprise Digital products
What kinds of services
are provided by the
company?
Hosting for software
development projects Digital Services
Model questions
IT Infrastructure
The company has a web site with information about the company itself, and its
products and services. Customers can order and pay for services online. Since the
services are delivered instantaneously it is not possible to track its status, so we will
answer yes, because this feature will not add value. The organization is flat, but we
will assume that there are number of people who are responsible for the information
system of the company. Therefore, they will act as a central IT department. This also
answers the question about recognition of the need for the information system – in
the flat organization, the collaboration between employees and the IT department
can be easily established. Based on these observations the answers for the IT
infrastructure questions are mapped as in Table 41 and summarized in Table 7. Table 7. The summary of IT Infrastructure questions.
Question Situation Matching Answer
Does your company has a
web site that contains
information about the
company, its'
products/services?
There is a website that
contains information about
the company and its products
and services.
Yes
Can customers perform
transaction with the
company online?
It is possible to pay for
products/services online. Yes
Can customers track the
status of their orders
online?
This functionality is not
needed because the orders
are being fulfilled instantly.
Yes
Who makes decision on
the acquisition of
addition functionality for
the information systems?
(in form of independent
Employees and IT
department together Central IT department
56
software packages,
additional modules)
How the need for the
additional functionality
is being recognized?
In the collaboration between
Employees and IT
department
In collaboration between
employees and IT
department
What is best represents
organization's
information system
architecture?
Good integration between
ERP, CRM and e-commerce
systems. Some data analysis
features are being used. Most
operational business
processes are covered by the
information system.
Front-office and back office
systems are well integrated
(no problems with data
formats, automated data
transfer). Some decision
support systems are
introduced.
CRM
In the CRM perspective the company makes use of CRM capabilities to analyze
the profitability of different subscriptions, to gather data about their customers
(especially business customers). The CRM system is integrated into the information
system of the company. It can also be the case that the company uses packaged
software that includes CRM and ERP systems. The collaboration with the company is
possible only with use of e-mail. It is most likely that the company implemented only
operational CRM. As we noted above, the company may use packaged software so
that different information systems are already integrated and the ERP system
provides support for all of the operational processes in the company. Based on this
information we can conclude that the company uses CRM system (question
CRM_01), the customer data is being gathered and analyzed (question CRM_02),
the company exploit features of the operational CRM system (question CRM_03)
and that the CRM software is fully integrated with the information system of the
company (question CRM_04). The answers are summarized in Table 42 and Table 8.
Table 8. Summary of the CRM questions.
Question Situation Matching Answer
Is CRM system used in
the organization?
The CRM system is part of
the information system of
the company.
Yes
Does customer data is
being analyzed?
The customer data is being
gathered and analyzed with
use of the CRM system.
Yes
How customer data is
being analyzed?
The company does not make
use of special data analysis
techniques, but make use of
features of the operational
CRM system.
With use of features of the
operational CRM system
57
Is CRM fully integrated
into the Information
system of the
organization?
The CRM system is fully
integrated into the
information system of the
company, so that it shares
data with other systems.
Yes
ERP
We will assume that information system architecture is represented by good
integration between front-office and back-office system, but integration with partner
organizations is not implemented. This lead to the answer that ERP system covers
most operational processes for the question ERP_01 and the answer that ERP system
is integrated with front-office systems for the question ERP_02 (Table 43). The
answers to the ERP questions are summarized in Table 9. Table 9. Summary of the ERP questions.
Question Situation Matching Answer
What is the scope of the
implementation of the
ERP system?
The ERP system is providing
enough functionality to cover
most of the operational
processes.
ERP system covers most of
operational business
processes.
What is the level of
integration between ERP
and other information
systems?
The company integrated its
information systems, such as
ERP and CRM, but the
functionality of interaction
with external information
systems is not implemented.
Integration with front-office
systems (e.g., ecommerce,
CRM).
Web 2.0
The company makes use of social media, such as Twitter and corporate blog, to
deliver news about the company, so the question Web_01 is answered positively. The
company uses Web 2.0 software such as wiki internally to capture knowledge in the
company, so that the answer for the question Web_02 is positive. We will assume
that there is a person or persons who are responsible for the use of social media in
the company (the answer for the question Web_03 is Yes). The personalized content
is represented by the news that user can subscribe to. It leads to the answer that only
some personalized content is available to the customers (question Web_04).
Customers cannot rate services and products itself, they can only write about the
content of the hosted projects and rate projects by adding them to the watch list (the
more people watching the project the more interesting it is). We can count it as a
positive answer to the questions Web_05 and Web_06. The company does not
specifically analyze data from web, only for particular topics or by particular people,
so the answer for the question Web_07 is sometimes. The company does not use
Web 2.0 tools to collaborate with other companies (the answer for the question
Web_08 is negative). For the mapping of the answers see Table 44.
58
Processes
In the process dimension we will assume that the company uses specific e-
commerce/e-business practices, like use of social media, special offers for public
projects (positive answer for the question PR_01); that the company formulate
specific goals for e-commerce/e-business projects (positive answer for the question
PR_02) and for each project the scope of the work identified and outcomes are
defined (positive answer for the question PR_03). The company has an internal
policy for e-commerce/e-business projects and activities (positive answer for the
question PR_04), requirements and plans for these projects are explicitly defined
(positive answer for the question PR_05), and these projects are supported by
adequate resources (positive answer for the question PR_06). The responsibility for
these projects is being assigned (positive answer for the question PR_07), and
involved staff can receive training if needed (positive answer for the question
PR_08). In the flat organization, it is easy to identify relevant stakeholders and
involve them in implementation of the e-commerce/e-business project (positive
answer for the question PR_09). While requirements and objectives for e-
commerce/e-business projects are established, during the monitoring of the process
they are also being used to compare with actual progress of the project and used to
provide corrective actions (positive answers for the questions PR_10 and PR_11).
Senior staff is also involved in these projects to reviews its progress and outcomes
(positive answer for the question PR_12). At the same time, the company established
a description of the e-business process (positive answer for the question PR_13) and
collect relevant measures, measurements improvement information (positive answer
for the question PR_14). Only qualitative objectives were established, while
quantitative objectives are not implemented (negative answer for the question
PR_15). There is detailed information about the stability of a particular sub-process
(negative answer for the question PR_16). The company is purely dot com; therefore
business processes were not re-engineered in advance (negative answer for the
question PR_17), but were changed later (positive answer for the question PR_18).
The policy on continuous improvement and identification of the root causes of the
problems is not established (negative answers for the questions PR_19 and PR_20).
For the mapping of the answers refer to the Table 45.
SCM
The SCM dimension is not applicable to this company, because it provides only
digital products and digital services.
People
People dimension is characterized by the requirement of having strong
technical skills, while small number of employees has business skills. So the
matching answer for the question PE_01 is that staffs are required to have technical
and business knowledge. Naturally, for this company the person with the highest title
has the responsibility for the e-commerce/e-business development and the e-
business function is the integral part of the company. Correspondingly, the answer
for the question PE_02 is that the head of the e-business project is also a member of
board of directors, and the answer for the question PE_03 is positive. Employees are
59
involved in the process of capturing their knowledge and experiences (for this Web
2.0 tools can be used), so the answer for the question PE_04 is positive. New
employees can receive guidance from other employees (positive answer for the
question PE_05). The company does not use outsourcing and does not share experts
with other companies. Therefore, the answers for question PE_06 and PE_07 are
negative. The answers are filled in in Table 46.
Work Environment
In the dimension Work Environment the company has the formal structure for
the e-commerce/e-business function (positive answer for the question WE_01) and
the management considers e-business as the single most critical factor for the
company (matching answer for the question WE_02). Following this, the company
has organization-wide architecture of e-business and related standards (positive
answers for the questions WE_03 and WE_04). The answers are captured in the
Table 47 and summarized in Table 10.
Table 10. Summary of the Work Environment questions.
Question Situation Answer
Does your company have
a formal structure for e-
commerce/e-business
function?
The e-business function is
the main function of the
company, so the company
has the formal structure.
Yes
What is the position of
the e-commerce/e-
business function in the
organization?
The company can be
classified as a pure-play, so
the e-business is the single
most critical factor.
Management considers e-
business as the single most
critical factor for the
organization
Does your company have
established
organization-wide
architecture of the e-
commerce/e-business
function?
The e-business function is
the single critical function for
the company, so the
architecture has been
established.
Yes
Does your company have
established standards
for e-commerce/e-
business related
functions? (such as data
transfer, security)
The standards for the e-
business function were
established to ensure
consistent grow and
operations in the company.
Yes
Strategy
The strategy is represented by the integration of the e-business into the
business strategy (positive answer for the question ST_01). In this case the e-
business strategy is the business strategy of the company (matching answer for the
question ST_02). The company does not invent new business models, but rather
improves and extends its business model, therefore they use strategic planning
60
approach (the matching answer for the question ST_03 is strategic planning). The
answers are represented in the Table 48 and summarized in Table 11.
Table 11. Summary of the Strategy questions.
Question Situation Answer
Does your company have
established e-
commerce/e-business
strategy?
Since the company is a pure-
play the business strategy
can be seen as an e-business
strategy.
Yes
What is the level of
development of the e-
commerce/e-business
strategy?
E-business strategy
incorporated as part of the
business strategy.
What is the approach to
form strategy in your
company?
The company is not aiming
to invent new business
models, but it is working on
improving existing business
model.
Strategic planning
From the answers it can be seen that the company is on level 3 in the dimension
IT Infrastructure, on level 2 in the sub-dimension CRM, on level 4 in the sub-
dimension ERP, and on level 2 in the sub-dimension Web 2.0. On overall the
company is on level 2 for the dimension IT Infrastructure (including sub-
dimensions). In the dimension Processes, the company is placed on the level 3. In the
dimension People the company is on the level 3. In the dimension Work
Environment the company is placed on the level 5, but on in the sub-dimension
Strategy is it on the level 4. The overall level for the dimension Work Environment is
4. The overall level for the company is level 2 and it is being assigned as minimum
observed maturity level (Figure 4).
In order to proceed to the next level the company shall focus on the
improvement of the CRM system and on the usage of Web 2.0. For the CRM the
company shall introduce analytical CRM system. Improvement of the Web 2.0 usage
is related to the more extensive analysis of data from the Internet and
implementation of the recommender system. These two recommendations are
similar in a way that the company should focus more on the analysis of gathered
data. If the company does not have internal expertise or the management is not sure
about the benefits of data analysis, then research on the prospective of data analysis
in the company should be done. The issue of not having an internal expertise can be
solved in two ways: the company can establish internal business intelligence group or
it can hire external consultants. This solution should be based on the strategy
towards BI and outsourcing: whether the company is planning to establish internal
expertise or would prefer to focus on its main processes and outsource the BI
division.
61
Figure 4. Resulting maturity levels for the example company.
Respondents
The target audience of the SMME model is the management of the company;
therefore the management shall be asked to present data about the e-business
implementation in the company.
Decisions of the Model design part are summarized in Table 12. Table 12. Summary Model Design.
Decision
parameter Characteristic
Maturity
definition Process-focused Object-focused People-focused Combination
Goal function One-dimensional Multi-dimensional
Design
process Theory-driven
Practitioner-
based Combination
Design
product
Textual
description of
form
Textual
description of
form and
functioning
Instantiation (assessment tool)
Application
method Self-assessment
Third-party
assisted Certified professionals
Respondents Management Staff Business
partners Combination
0
1
2
3
4
5
Resulting maturity
IT Infrastructure
CRM
ERP
Web 2.0
Processes
People
Work Environment
Strategy
62
5.6. Design evaluation
The proposed model has been evaluated by experts from industry and
academia. The feedback on the development process and on the resulting model has
been received. Hence the subject of evaluation is both design process and design
product. The feedback from experts has been received before the actual application
of the model, so the time frame of the evaluation is ex-ante. Since the model was
not applied to the actual company the evaluation method is considered to be more
artificial.
Two experts from the industry are being asked to provide their feedback on the
SMME and its design process. Both experts received a document, which consists of
the following parts of the current report: Introduction, Methodology, Related work
(only part on the definition of comparison framework and the summary of a
literature study), E-business, Situational maturity model for e-business (with
subparts of Define scope, Model design and Barriers and Critical success factors).
First expert from the company Capgemini, in the role of enterprise architect, has
more than 10 years of experience in management consulting, especially in areas of
enterprise architecture, business process management and information
management. The feedback has been received during a 1 hour interview. Most of
comments were concerned with the extension of the maturity model with more
dimensions and with discussion on modern concepts. From the perspective of the
dimensions, the experts suggested to study the possibility to refine some dimensions
and add more sub-dimensions. For example, dimensions Processes could be refined
with sub-dimensions of customer service processes and marketing processes. For the
dimension IT infrastructure sub-dimensions of Business Intelligence and Business
Process Management could be added. Also the expert suggested providing more
details on the GPIS model; according to this comment the part “Description of levels
Definition of the
comparison framework
IS maturity models
comparison
Definition of e-business
Development of the
situational maturity model for e-business
Development of the
assessment tool
Validation
and
Verification
63
in the GPIS model” has been added. Notes from the interview meeting are presented
in Appendix Expert feedback #1 “Capgemini” (interview notes).
Second expert from the company Red Hat, in the role of principal software
engineer, has more than 7 years of experience in software engineering in roles of
software developer and software architect. The feedback has been received through
gtalk. The expert noted that the implementation of a maturity model in the company
requires substantial resources, and regarding SME “the maturity model consumes
valuable resources, which lead to failure for small biz”. There were no comments
regarding technological aspects of the SMME. This can be related to the fact that the
SMME was aimed to be technology independent. Both experts commented that prior
research, development process are consisted with the obtained model.
With regard to modern technologies and trends, experts noted that it would be
interesting to see how such things as cloud computing, mobile commerce,
smartphones and Table PCs, and globalization are influencing e-business. These
suggestions were taken into account for future work.
Decisions of the Design evaluation part are summarized in Table 13. Table 13. Summary Design evaluation.
Decision
parameter Characteristic
Subject of
evaluation Design process Design product Both
Time-frame Ex-ante Ex-post Both
Evaluation
method Naturalistic Artificial
5.7. Reflection on evolution
Subject of change
The model is not considered to be unchangeable in the future, since new technologies
and new business models provide new best practices for conducting business over
the Internet. Also an extensive research of business models and e-business
development patterns can reveal new dimensions for the model or new levels. For
example, in previous e-business maturity models the level of social commerce did not
exist and only Jacobs and Nakata [42] described such level.
Frequency
It is not clear at this point how often model should be revised. On one hand, the
domain of e-business is complex and dynamic, on the other hand, frequent change
will make the model less usable for the organization, because the company will need
to deploy updated version of the model and execute new assessment. A usual
recommendation is to conduct company assessment annually.
64
Structure of change
The structure of change is concerned with the ability of third-parties to change the
maturity model. For example, in case of the CMMI, there is an organization that is
responsible for the development of the model and third-parties are not authorized to
change the model. We recommend that changes shall be discussed with developers,
in this way these change can contribute to the development of the SMME and also
they can be approved by authors.
Decisions of the Reflect evolution part are summarized in Table 14. Table 14. Summary reflect on evolution.
Decision
parameter Characteristic
Subject of
change None Form Functioning
Form and
Functioning
Frequency Non-recurring Continuous
Structure of
change External/open Internal/exclusive
65
6. Discussion In this project we studied the roots of the maturity models and also compared
maturity models from different subdomains in the information systems field. The
comparison has been done based on the comparative framework and conclusions on
the functionality of the studied models have been drawn. In these conclusions we
noted that several patterns are observed for the maturity models regardless of the
subdomain such as lack of supporting material in forms of handbooks or assessment
tools; lack of discussion on the evolution of the model with respect to the new
technologies and best practices; lack of recommendations; no support for
configuration of the model.
Based on these observations we defined the situational maturity model for e-
business. This model is based on the previous research in e-business and e-
commerce maturity models, and on the GPIS model. The SMME model is the first
maturity model for the e-business domain that has a situational property, so that the
model can be configured for the situation of the particular organization. The model
makes use of a relatively simple change in configuration: it is assumed that the
supply chain management dimension is not important for the companies that
provide only digital products and/or digital services. The model has been evaluated
by experts from the industry and from the academia and some suggestions on the
model have been received. These suggestions deal with the lack of support for new
trends such as cloud computing, wide spread use of mobile devices (such as
smartphones and tablet PCs). In order to include these trends and technologies into
the SMME, detailed research on the best practices and the relevance between the
different maturity levels and these technologies is required. It was also noted that
concepts such as Business intelligence and Business Process Management are not
covered in detail in the SMME. As can be seen from the overview of the BI and BPM
maturity models in chapter 3, the maturity models for these concepts are in active
development and so far many maturity models were produced, but the unified view
on the evolution of the concept is still to be defined.
Presented SMME model is provided with supporting materials such as this report
and also with the assessment tool in the form of the questionnaire.
Recommendations that can be derived from the SMME are still implicit, while their
quality is higher, because the supporting materials include discussion on barriers
and critical success factors in e-business adoption with respect to SME and Large
companies. Unlike other e-business/e-commerce maturity models that were studied
in chapter “Related work”, SMME has an option to configure the model, but only for
one sub-dimension. Clearly, there is a need for further research to provide more
configuration options.
The model has not been tested in application to companies, but it seems that a
full-scale application is needed to really derive shortcomings of the model. For
example, if the model is applied only to one or two companies then it is hard to judge
whether it is the problem of the model or it is a problem of the company. Therefore,
testing on a very limited set of companies is not considered to be efficient.
66
In order to make the SMME model comparable to the other maturity models it
was also described with the use of the comparative framework from the chapter 3.
Refer to the Table 49 for an overview of the general maturity model attributes and to
the Table 50 for an overview of the maturity model design and maturity model use
attributes.
67
7. Conclusions In the presented project the application of maturity models in information
systems domain has been studied with special focus on the e-business sub-domain.
The research included the following stages:
1. The concept definition and literature review;
2. Study of the e-business domain;
3. Study of the maturity model development process;
4. The development of the situational maturity model;
5. Verification of the developed model with experts from industry and academia;
6. Definition of the future work.
The concept of maturity models and its origins has been studied. Based on these and
on the classification system for maturity models, the comparative framework for
maturity models has been defined.
Then the domain of e-business has been studied. This study included the research
on the definition of the term e-business. At least six definitions have been identified
from the literature and the definition of Grefen [29] has been chosen because it
incorporates the most frequent characteristics of e-business compared to other
definitions. After this the main components of e-business were identified and
composed using generic e-business architecture. The study on the definition and
architecture of e-business has been done in order to provide a unified view on the
complex field of e-business for people who will be involved in the assessment.
With respect to the research questions, following conclusions can be made:
1. Is there a maturity model in the information systems domain that has
desired properties (key terms definition, based on the established
development process and theoretical model, and has a situational aspect)?
A number of maturity models from information systems sub-domains, such as e-
business, e-government, enterprise resource planning, product lifecycle
management, and business process management were selected and described with
use of the comparative framework. This comparison led to the identification of the
common problems of the selected maturity models:
No discussion on the evolution of the maturity model;
Lack of supporting materials;
Suitability to provide only implicit recommendations;
Lack of verification and/or validation;
No configuration options;
Emphasis of the maturity model is not specified.
No suitable maturity model that would fit all the desired properties has been
found in the IS domain.
2. If such a model (from question 1) can be found then we should explore
whether we can adopt similar approach to develop a situational model for e-
business, otherwise we should explore if it is possible to develop a situational
model for e-business.
During the literature study a model with desired properties was not found, so we
attempted to develop a situational maturity model for e-business. In the presented
68
research a situational maturity model for e-business has been developed. The project
made use of the research on the situational maturity models and of the maturity
model development process that were proposed by Mettler [62] to develop a
situational maturity model for e-business. The new model has been named a
situational maturity model for e-business (SMME). The dimensions of the model and
its contents were derived from the GPIS model and from previous research on e-
business/e-commerce maturity models, e-business strategy, and e-business
development. Situational aspect is presented by inclusion or exclusion of the SCM
sub-dimension based on the products/services offered by a company.
After the definition of the SMME, the assessment tool in form of the questionnaire
has been created. The sections of the questionnaire resemble the dimensions of the
SMME and questions were derived from the description of each dimension for each
maturity level.
The SMME and the questionnaire were evaluated by experts from industry and from
academia. There were little comments on the technological aspect of the model, since
the model is not bound to any particular technology. The comments on the use of
new concepts and technologies, such as cloud computing, mobile commerce, tablet
PCs and smartphones were incorporated as part of the future work, since as of today
this research is still in progress.
3. Will developed model provide explicit recommendations for assessed
companies?
Developed SMME does not provide explicit recommendations for users of the
model. However, discussion on barriers and critical success factors in e-business
adoption has been included into supporting materials in order to increase the quality
of derived recommendations. Also a research on e-business models has been defined
as a valuable future work for the development of more complex e-business maturity
models, which can possibly provide explicit recommendations.
With respect to the problem, which has been formulated in the beginning of the
research, it can be concluded that proposed situational maturity model for e-business
has desired properties and can be seen as a viable solution.
Presented research conforms to Becker et al. [7] requirements to the development
of a maturity model in the following way: Requirement 1 has been fulfilled by chapter
3.2 “Comparison of IS maturity models”. The use of defined maturity model
development process, which describes steps to develop a maturity model, is matched
with requirement 2 “Iterative procedure”. Requirement 3 “Evaluation” has been
satisfied by the evaluation of the proposed model by experts. Requirement 4 “Multi-
methodological procedure” has been fulfilled by application of the theoretically
grounded maturity model development process and by usage of theoretically sound
underlying model (the GPIS model). Requirements 5 “Identification of Problem
Relevance” and 6 “Problem definition” are met by discussion in chapter “Problem
and Research questions” and by clarification of the importance of maturity in chapter
“Introduction”. Orientation of the maturity model for management-oriented
audience and inclusion of discussion of critical success factors and barriers comply
with Requirement 7 “Targeted Presentation of Results”. This report documents in
69
detail the development process of the maturity model, parties involved and obtained
results, which fit to the Requirement 8 “Scientific documentation”.
The field of e-business is quite complex as it is connected to other information
systems and cannot exist without them. From the point of view of enterprises it is
important to set the right direction in the e-business development, otherwise, time
and money will be spent on something that does not add value for customers and
partner organizations. The concept of maturity model has the potential to provide
companies with recommendations on action that should be taken in order to achieve
better implementation of the e-business in a company. We found out that this
concept in the field of e-business is not developed yet, so it is hard to receive
personalized recommendations and it is difficult to choose appropriate e-business
maturity model.
70
8. Future work The complexity of the e-business domain may suggest that it is possible to create
more complex maturity model with more configuration parameters. In order to
create more complex situational maturity model for e-business the research on the
important factors for different kind of business models is needed. One of the possible
ways to better study the spectrum of different organizations conducting e-business is
to carry out a detailed research on the business models for this kind of companies. A
business model “ depicts the content, structure, and governance of transactions
designed so as to create value through the exploitation of business opportunities.”[2].
According to Grefen [29] e-business model consists of business drivers, business
chains, business directions, and business structures. Osterwalder [67] provides an
overview of the different views on business models and it can be seen that different
views include different components of business models. Lambert [54] conducted a
search of the e-business models and identified ten proposed classifications. As we
can see the research on business models is also not completed yet. We can conclude
that complex research is needed in order to create more general e-business model
with more configuration options. Firstly, relevant framework for the research on e-
business models should be defined, which will have components relevant not only to
e-business models, but also to e-business maturity model. Secondly, the classification
of business models shall be verified on real world examples. Thirdly, the general
maturity model for e-business should be derived from the identified e-business
models and configuration options should defined. At last, the e-business maturity
model should be applied to several companies that share the same e-business model.
Another improvement point is the development of the online assessment tool for the
model. This tool shall be properly validated and configurable as an e-business
maturity model. With the use of this tool it will be easier to create a central repository
of the assessment results, which will allow for benchmarking of similar companies.
71
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Appendix Table 15. Maturity model design and maturity model use attributes. Based on Mettler’s classification system [60]
Attributes
Maturity model design
Concept of maturity Composition Reliability Mutability
Pro
cess
matu
rity
Ob
ject
matu
rity
Peo
ple
matu
rity
Matu
rity grid
Likert-like
qu
estion
naire
CM
M-like
Verificatio
n
Valid
ation
Form
Fun
ction
ing
Maturity model use
Method of application
Support of application
Practicality of evidence
Self-assessm
ent
Third
-party assisted
assessmen
t
Assessm
ent b
y
certified
practitio
ners
No
sup
po
rting
materials
Textual d
escrip
tion
/ han
db
oo
k
Softw
are assessm
ent to
ol
Imp
licit reco
mm
end
ation
s
Explicit
recom
men
datio
ns
Table 16. General maturity model attributes. Based on Mettler’s classification system [60] and Jones et al. comparative framework [63]
General Maturity Model Attributes
Nam
e
Acro
nym
Prim
ary
sou
rce
Secon
dary
sou
rce
Ad
dressed
to
pic
Origin
Au
dien
ce
Year of
Pu
blicatio
n
Acce
ss
Develo
pm
e
nt
Emp
hasis
Nu
mb
er of
stages
76
Table 17. Classification system for maturity models.
Dimension Attributes
General model attributes
Nam
e
Acro
nym
Prim
ary
sou
rce
Secon
dary
sou
rce
Ad
dressed
top
ic
Origin
Au
dien
ce
Year of
Pu
blicatio
n
Acce
ss
Maturity model design
Concept of maturity Composition Reliability Mutability
Pro
cess m
aturity
Ob
ject
matu
rity
Peo
ple
matu
rity
Matu
rity grid
Likert-like
qu
estion
naire
CM
M-like
Verificatio
n
Valid
ation
Form
Fun
ction
ing
Maturity model use
Method of application
Support of application
Practicality of evidence
Self-assessm
ent
Third
-party
assisted
assessmen
t
Assessm
ent b
y certified
practitio
ners
No
sup
po
rting
materials
Textual d
escrip
tion
/ h
and
bo
ok
Softw
are assessm
ent to
ol
Imp
licit
recom
men
datio
ns
Explicit
recom
men
datio
ns
77
Table 18. E-business maturity models comparative framework.
Criterion
Perspective Development Emphasis Verification Barriers Focus Source Stages
Tech
no
logical
Ind
ustry
Bu
siness
Evolu
tion
ary d
evelop
men
t
Linear
No
n-lin
ear
Small an
d M
ediu
m
enterp
rises (SME)
Large Enterp
rises (LA)
No
n-sp
ecific (NS)
Yes/N
o
Yes/N
o
E-com
merce
E-bu
siness
No
n-sp
ecific
Pu
blic secto
r
Private
sector
Acad
emia
nu
mb
er of sta
ges
Table 19. General maturity model attributes of the e-business/e-commerce maturity models.
Attribute \ Model
McKay et al. [45] Rao et al. [72] Chan and Swatman [10]
Name Stages of Growth for
E-Business A stage model for e-commerce
development B2B e-commerce stages of
growth
Acronym SOG-e - -
Primary source
McKay et al, 2000 Rao et al, 2003 Chan and Swatman, 2004
Secondary source
http://www.pacis-
net.org/file/2000/29-
43.pdf
http://dx.doi.org/10.1108/14637150310461378
http://ieeexplore.ieee.org/xpls/abs
_all.jsp?arnumber=1265560&tag
=1
Addressed topic
Management of IS/IT Management of IS/IT Management of IS/IT
Origin Academic Academic Academic
Audience Management-
oriented Mix of Management and Technology orientation
Management-oriented
Year of publication
2000 2003 2004
Development Linear Linear Linear
Emphasis Non-specific SME Non-specific
Number of stages
6 4 4
79
Table 20. Maturity model design and maturity model use attributes for the e-business/e-commerce maturity models.
Model Attributes
Concept of maturity Composition Reliability Mutability
Pro
cess
matu
rity
Obje
ct
matu
rity
Peo
ple
matu
rity
Matu
rity g
rid
Lik
ert-lik
e
questio
nn
aire
CM
M-lik
e
Verific
atio
n
Valid
atio
n
Form
Functio
nin
g
McKay et al
Rao et al.
Chan and Swatman
Maturity model use
Method of application
Support of application
Practicality of evidence
Self-a
ssessm
ent
Third
-party
assis
ted
assessm
ent
Assessm
ent b
y
certifie
d
pra
ctitio
ners
No s
upp
ortin
g
mate
rials
Textu
al
descrip
tion /
hand
book
Softw
are
assessm
ent to
ol
Implic
it
recom
me
nda
tions
Explic
it re
com
me
nda
tions
McKay et al
Rao et al.
Chan and Swatman
80
Table 21. General maturity model attributes of the e-government maturity models.
Attribute \ Model
Davison et al. [16] Anderson and Henriksen [3]
Iribarren et al [41]
Name Alignment-Based Maturity Model Of The Government To E-Government
Transition Process
Public Sector Process Rebuilding model
E-Government Maturity Model
Acronym - PPR model eGov-MM
Primary source
Davison et al, 2005 Anderson and Henriksen,
2005 Iribarren et al, 2008
Secondary source
http://www.emeraldinsight.com/journ
als.htm?articleid=1514971&show=ab
stract
http://www.sciencedirect.
com/science/article/pii/S0
740624X05000973
http://www.springerlink.c
om/content/b43255h8122
7x6jq/
Addressed topic
Management of IS/IT Management of IS/IT Management of IS/IT
Origin Academic Academic Academic
Audience Management-oriented Technology-oriented Management-oriented
Year of publication
2005 2005 2008
Development Non-Linear Linear Linear
Emphasis NA NA NA
Number of stages
5 4 5
81
Table 22. Maturity model design and maturity model use attributes of the e-government maturity models.
Model Attributes
Concept of maturity Composition Reliability Mutability
Pro
cess
matu
rity
Ob
ject
matu
rity
Peo
ple
matu
rity
Matu
rity grid
Likert-like q
uestio
nn
air
e
CM
M-like
Verificatio
n
Valid
ation
Form
Fun
ction
ing
Davison et al.
Anderson and
Henriksen
Iribarren et al.
Method of application
Support of application
Practicality of evidence
Self-assessm
ent
Third
-party assisted
assessmen
t
Assessm
ent b
y certified
practitio
ners
No
sup
po
rting
materials
Textual d
escrip
tion
/
han
db
oo
k
Softw
are assessm
ent
too
l
Imp
licit reco
mm
end
ation
s
Explicit
recom
men
datio
ns
Davison et al.
Anderson and
Henriksen
Iribarren et al.
82
Table 23. General maturity model attributes of the ERP maturity model.
Attribute \ Model Holland and Light [35]
Name A Stage Maturity Model for Enterprise Resource Planning Use
Acronym -
Primary source Holland and Light, 2001
Secondary source http://dl.acm.org/citation.cfm?id=506732.506737
Addressed topic Management of IS/IT
Origin Academic
Audience Management-oriented
Year of publication 2001
Development Linear
Emphasis Non-specific
Number of stages 3
83
Table 24. Maturity model design and maturity model use attributes for the ERP maturity model.
Model Attributes
Concept of maturity Composition Reliability Mutability
Pro
cess
matu
rity
Ob
ject matu
rity
Peo
ple
matu
rity
Matu
rity grid
Likert-like
qu
estion
naire
CM
M-like
Verificatio
n
Valid
ation
Form
Fun
ction
ing
Holland and
Light
Method of application
Support of application
Practicality of evidence
Self-assessm
ent
Third
-party assisted
assessmen
t
Assessm
ent b
y
certified
practitio
ners
No
sup
po
rting
materials
Textual d
escrip
tion
/
han
db
oo
k
Softw
are
assessmen
t too
l
Imp
licit reco
mm
end
ation
s
Explicit
recom
men
datio
ns
Holland and
Light
84
Table 25. General maturity model attributes of the PLM maturity model.
Attribute \ Model
Batenburg et al. [6]
Name PLM framework for the assessment and guidance of PLM implementations.
Acronym -
Primary source Batenburg et al, 2006
Secondary source
http://alexandria.tue.nl/campusonly/Metis222535.pdf
Addressed topic Management of IS/IT
Origin Academic
Audience Management-oriented
Year of publication
2006
Development Linear
Emphasis Non-specific
Number of stages
5
85
Table 26. Maturity model design and maturity model use attributes for the PLM maturity model.
Model Attributes
Concept of maturity Composition Reliability Mutability
Pro
cess
matu
rity
Ob
ject m
aturity
Peo
ple
matu
rity
Matu
rity grid
Likert-like
qu
estion
naire
CM
M-like
Verificatio
n
Valid
ation
Form
Fun
ction
ing
Batenburg et al.
Method of application
Support of application
Practicality of evidence
Self-assessm
ent
Third
-party assisted
assessm
ent
Assessm
ent b
y certified
practitio
ners
No
sup
po
rting
materials
Textual d
escrip
tion
/ han
db
oo
k
Softw
are
assessmen
t too
l
Imp
licit
recom
men
datio
ns
Explicit
recom
men
datio
ns
Batenburg et al.
86
Table 27. Maturity model attributes of the vPMM maturity model.
Attribute \ Model
Lee et al. [56]
Name Value based Process Maturity Model
Acronym vPMM
Primary source
Lee et al, 2009
Secondary source
http://www.springerlink.com/content/3
44nt35t61658u35/
Addressed topic
Process Improvement
Origin Academic
Audience Management-oriented
Year of publication
2009
Development Linear
Emphasis Non-specific
Number of stages
5
87
Table 28. Maturity model design and maturity model use attributes of the vPMM maturity model.
Model Attributes
Concept of maturity Composition Reliability Mutability
Pro
cess
matu
rity
Ob
ject matu
rity
Peo
ple m
aturity
Matu
rity grid
Likert-like
qu
estion
naire
CM
M-like
Verificatio
n
Valid
ation
Form
Fun
ction
ing
Lee et al
Method of application
Support of application
Practicality of evidence
Self-assessm
ent
Third
-party assisted
assessm
ent
Assessm
ent b
y
certified
practitio
ners
No
sup
po
rting
materials
Textual d
escrip
tion
/ han
db
oo
k
Softw
are assessm
ent to
ol
Imp
licit
recom
men
datio
ns
Explicit
recom
men
datio
ns
Lee et al.
Table 29. Comparison of dimension of different e-business and e-commerce maturity models.
Saleh, 2005 [the
GPIS model]
Earl, 2000
Burn and Ash, 2005
McKay, 2000
Hafeez, Keoy, Hanneman,
2006
Chan and Swatman, 2004
Chaffey, 2002 Atos E-business maturity model,
2008
Dimension\Domain IS E-
business E-business E-business E-business E-commerce E-business E-business
IT Infrastructure
Technology Systems Technology E-commerce technologies
used
IT & Infrastructure
Processes
People
Staff / Skills
Personnel involved
People and Culture
Work Environment
Strategy Organization Strategy Strategy Management and
Organization
Motto
Mind-set
Result
Critical success factor
Focus
Products and Services
Business models
Strategic focus
Planning focus
Outcomes and performance gains
89
Structure
Organizational
scope
Style
Subordinate goals
Transformation
Services available
90
Table 30. Overview of the situational maturity model for e-business.
Dimension \ Level 0 (No e-transactions performed)
1 (Classical E-commerce)
2 (Social E-commerce)
3 (Internal integration)
4 (E-business) 5 (Optimized e-business)
Short description Organization has a web-site with information about company, products/services. Transactions cannot be performed online.
No Web 2.0 elements. Simple basket functionality. Transactions can be performed online.
Web 2.0 elements such as: user reviews, personalized recommendations.
Integration between back-office and front-office. Extensive data analysis.
Integration with partners.
Organization is able to create new business models, best practices.
IT Infrastructure IS mainly presented in form of small, independent financial packages that are being developed/purchased. Decision on their acquisition is made on the group level and based on the group needs as perceived by the group management.
Presented IS focus on the financial area. Small number of other business-oriented systems is being developed. IS/IT applications overlap in purpose, function and data. No centralized storage of data. Only data that is needed for the reporting is stored centrally. High maintenance cost of IS/IT systems.
IS/IT applications cover most major operation areas, but IT services vary between business units. Central IS/IT functions exists.
All required IS/IT are implemented. Integration between front-office and back-office systems is implemented. Central coordination of the use of IS/IT in the organization. Adoption if decision support systems. Buy- and sell-side integrated with ERP system.
Strategic IS/IT applications are developed with orientation on gathering and processing external data, in addition to internal. Decision support systems for senior management are implemented. Problems of compatibility between internal and external data.
IS/IT applications support inter-organizational processes. Successful development and usage of knowledge management system. Integrated inter-organizational systems help to build and maintain relationships within the strategic business
91
Extensive use of data mining and data warehousing technologies. [McKay, 2000] ERP, CRM and SCM are fully integrated. [Evans, 2006]
network. [McKay 2000]
CRM None or simple contact management used by some sales representatives. Customer surveys. Customer data analyzed with use of spreadsheets, statistical packages.
Implementation of operational CRM.
- Analytical CRM.
CRM fully integrated with other IS. Collaborative CRM.
-
ERP Legacy system/Out-of-the-box solutions with accounting/finance/HR functionality.
Extension of the ERP system with order fulfillment functionality (purchasing, production, delivery)
- ERP is integrated with front-office systems.
ERP is integrated with CRM, SCM and other IS.
-
Web 2.0 Experimentation with Web 2.0 tools by some employees (such as creating company accounts
Experimentation with Web 2.0 tools internally, such as usage of wikis, internal social
Customers can write reviews for products and rate them. Special offers are published online in
Integration of internally used tools. Analysis of data
Inter-organizational use of Web 2.0 tools.
-
92
in social networks). No responsible person defined for the Web 2.0.
networks.
blogs and micro blogs. Recommender system is implemented, such that customers receive recommendations based on their interests or based on purchases of similar users. There is aperson responsible for Web 2.0 in the organization.
gathered from Web.
Processes Best practices are performed in ad hoc way.
Base practices in e-business/e-commerce are recognized.
Specific goals are formulated (the scope of the work is identified and products/services to be produced are defined).
Organizational policy for planning and performing e-business/e-commerce activities is established;
Objectives, requirements and plans for performing the e-business/e-commerce process are established;
Adequate resources for performing the e-business/e-commerce process
The description of a defined e-business process has been established and maintained;
Measures, measurement results, and improvement information derived from planning and performing the e-commerce/e-
Quantitative objectives for the e-business process about quality and process performance based on customer needs and business objectives have been established and are being maintained;
The performance of one or
The continuous improvement of the e-business process in fulfilling the relevant business goals of the organization has been ensured;
The root causes of problems in the e-business process have
93
are provided;
The responsibility for performing the e-business/e-commerce process has been assigned;
People, who support or/and perform the e-business/e-commerce process are being trained when needed;
Relevant stakeholders are identified and are being involved in the e-business/e-commerce process;
The e-business/e-commerce process is being monitored against the plan and corrective actions are being taken;
Adherence of the e-commerce/e-business process has been evaluated against requirements,
business process is being collected to support the future use and improvement of the organization’s processes.
more sub-processes of the e-business process has been stabilized to determine its ability to achieve the established quantitative quality and process performance objectives.
Business process re-engineering to match customers’ expectations. Processes and structures may have to be reengineered to accrue the true benefits of modern technologies.
been identified and corrected.
94
objectives and standards and non-compliance has been reported;
Higher-level management is involved in reviewing the activities, status and results of the e-business/e-commerce process and issues are being resolved.
SCM (NA for digital services providers.)
Ad hoc way. Basic SCM processes are defined and documented.
- SCM is the strategic tool.
Cooperation between intra-organizational functions, vendors and customers in the form of teams that share common SCM measures and goals.
Continuous improvement
The company, its vendors and suppliers, take cooperation to the process level.
Advanced SCM practices are implemented such as collaborative forecasting and planning
Creation of multi-firm supply chains. Creation of multi-firm SCM teams with common processes, goals and broad authority. Horizontal, customer-focused, collaborative culture. Process performance and reliability of the
95
efforts focus on root cause elimination and performance improvements.
with customers and suppliers.
SCM process performance is very predictable and targets are reliably achieved.
Process improvement goals are set by the teams and achieved.
extended system are measured and joint investments in improving the system are shared, as are returns.
People Ad hoc skills acquisition. Skills are developed from personal motivation. No IT managers. No dedicated IT staff, only technicians and programmers. No IS/IT training provided. Skills are of technical nature and they are specific to individual IS/IT applications.
IT Manager that is responsible for the IS/IT function has e-commerce responsibility. Users have the required training and skills to use the new IS/IT that is being developed/purchased. The small number of IS/IT staff have the skills required perform their
Technically oriented IT manager is appointed; Considerable technical competence because of the well-developed IT related skills. Well-developed project management skills. E-commerce staff has a good understanding of the business and also of the capabilities, potentials
A high level manager for the e-business/e-commerce services area is appointed with middle management status. E-commerce/E-business staff and users have their performance quantified and measured against
Organization has e-business manager with senior management status or CIO that have e-business management as his responsibility. The e-business and business planners’ roles are combined to plan the strategic use of e-business
Core staff members are retained. Widespread outsourcing and sharing of e-business staff between allied large organizations. The head of e-business is also a member of the board of directors.
96
assignments.
and limitations of IT. The role of It business analyst has been created.
quantitative performance baselines. E-commerce/e-business staff is required to have business knowledge. All individuals are involved in capturing/documenting their knowledge and experiences with e-business/e-commerce related work. The e-business/e-commerce staff can provide guidance to less experienced staff.
for individual groups and for the organization as a whole. E-business function becomes an integral part of the organization.
Work Environment Senior management has little concern for the potential utility of the e-business/e-commerce.
Management considers e-business/e-commerce to be concern of technologists not management. The priority and thrust are to minimize the
Management considers e-business/e-commerce to be one of the many ways to reduce costs in the firm and sees expenditure on e-business/e-commerce as a cost-saving expenditure.
Management considers e-business/e-commerce to be vital for the smooth functioning of operations. The e-business and e-commerce
Management considers e-business as one of the vital parts of the competitive strategy.
Management considers e-business as the single most critical factor for the organization. There is overall integration of views regarding e-business in the
97
expense of e-business/e-commerce utilization.
An organization-wide e-business/e-commerce architecture policy and standards are established.
function is well established and its mission is to exploit the e-business/e-commerce for business purposes and to provide competitive e-business/e-commerce in a partnership environment with users. The users have a significant degree of involvement in e-business/e-commerce related decisions, where e-business/e-commerce investments are derived from users’ stated needs.
organization.
Strategy No strategy developed.
Development of the strategy only for e-commerce. Not integrated with business strategy.
E-commerce strategy integrated with marketing strategy. Expanding consumer base.
E-commerce strategy integrated with business strategy.
E-business strategy incorporated as part of the business strategy.
Forming, maintaining and exploiting the strategic business networks.
98
Strategic thinking replaced strategic planning.
99
Table 31. Maturity criteria for IT Infrastructure dimension.
IT Infrastructure
Question code \ Maturity level
Level 1 Level 2 Level 3 Level 4 Level 5
ITI_01 Yes Yes Yes Yes Yes
ITI_02 Yes Yes Yes Yes Yes
ITI_03 Yes Yes Yes Yes Yes
ITI_04 Local group of employees
Department Central IT department
Central IT department Central IT department
ITI_05 Opinion of local management
Opinion of the department
In collaboration between employees and IT department
In collaboration between employees and IT department
In collaboration between employees and IT department
ITI_06 Independent financial, HR software packages. Independent reporting system. No centralized storage of data.
Information systems for most of the operational areas are implemented. There is a difference in available IT services between business units.
Front-office and back office systems are well integrated (no problems with data formats, automated data transfer). Some decision support systems are introduced.
The information system in the organization has features of gathering and processing data from external to the organization sources. Decision support systems for senior management are implemented. Data mining and data warehousing technologies are used in the organization. ERP, CRM and SCM systems are well integrated.
Information systems of the organization are integrated with information systems of partner organizations. Knowledge management system is implemented.
100
Table 32. Maturity criteria for ERP sub-dimension.
ERP
Question code \ Maturity level
Level 1 Level 2 Level 3 Level 4 Level 5
ERP_01 Integrated ERP information system covers such business processes as accounting/finance/HR and order fulfillment (purchasing, production, delivery)
Integrated ERP information system covers such business processes as accounting/finance/HR and order fulfillment (purchasing, production, delivery)
ERP system covers most of operational business processes.
ERP system covers most of operational business processes.
ERP system covers all operational processes include industry-specific functions.
ERP_02 No integration.
No integration.
Integration with front-office systems (e.g., ecommerce, CRM).
Integration with front-office systems (e.g., ecommerce, CRM).
Full integration with other information systems in the organization (such as SCM, PLM)
101
Table 33. Maturity criteria for CRM sub-dimension.
CRM
Question code \ Maturity level
Level 1 Level 2 Level 3 Level 4 Level 5
CRM_01 Yes Yes Yes Yes Yes
CRM_02 Yes Yes Yes Yes Yes
CRM_03 With use of features of the operational CRM system
With use of features of the operational CRM system
With use of features of analytical CRM system
With use of features of collaborative CRM system
With use of features of collaborative CRM system
CRM_04 No No No Yes Yes
Table 34. Maturity criteria for Web 2.0 sub-dimension.
Web 2.0
Question code \ Maturity level
Level 1 Level 2 Level 3 Level 4 Level 5
Web_01 No Yes Yes Yes Yes
Web_02 Yes Yes Yes Yes Yes
Web_03 No Yes Yes Yes Yes
102
Web_04 No Only some personalized content (e.g., new news since last login)
Personalized recommendations based on the purchase history and customer' preferences.
Personalized recommendations based on the purchase history and customer' preferences.
Personalized recommendations based on the purchase history and customer' preferences.
Web_05 No Yes Yes Yes Yes
Web_06 No Yes Yes Yes Yes
Web_07 No Sometimes (by particular departments or for particular topics)
Yes. With use of specialized tools (e.g., opinion mining).
Yes. With use of specialized tools (e.g., opinion mining).
Yes. With use of specialized tools (e.g., opinion mining).
Web_08 No No No Yes Yes
Table 35. Maturity criteria for Processes dimension.
Processes
Question code \ Maturity level
Level 1 Level 2 Level 3 Level 4 Level 5
PR_01 Yes Yes Yes Yes Yes
PR_02 Yes Yes Yes Yes Yes
PR_03 Yes Yes Yes Yes Yes
PR_04 No Yes Yes Yes Yes
PR_05 No Yes Yes Yes Yes
PR_06 No Yes Yes Yes Yes
PR_07 No Yes Yes Yes Yes
PR_08 No Yes Yes Yes Yes
103
PR_09 No Yes Yes Yes Yes
PR_10 No Yes Yes Yes Yes
PR_11 No Yes Yes Yes Yes
PR_12 No Yes Yes Yes Yes
PR_13 No No Yes Yes Yes
PR_14 No No Yes Yes Yes
PR_15 No No No Yes Yes
PR_16 No No No Yes Yes
PR_17 No No No Yes/No Yes/No
PR_18 No No No Yes (if PR_18 = no) or Yes/No (if PR_18 = yes)
Yes (if PR_18 = no) or Yes/No (if PR_18 = yes)
PR_19 No No No No Yes
PR_20 No No No No Yes
Table 36. Maturity criteria for SCM sub-dimension.
SCM
Question code \ Maturity level
Level 1 Level 2 Level 3 Level 4 Level 5
SCM_01 Yes Yes Yes Yes Yes
SCM_02 No No Yes Yes Yes
104
SCM_03 No defined collaboration activity
No defined collaboration activity
Teams that share common measures and goals
Shared business process
Multi-firm SCM team with common processes, goals and broad authority
SCM_04 No No Yes Yes Yes
SCM_05 No Basic practices Basic practices Advanced SCM practices (such as collaborative forecasting, planning with customers and suppliers).
Advanced SCM practices (such as collaborative forecasting, planning with customers and suppliers).
SCM_06 No No No Yes Yes
SCM_07 No No No Yes Yes
SCM_08 No No No No Yes
Table 37. Maturity criteria for People dimension.
People
Question code \ Maturity level
Level 1 Level 2 Level 3 Level 4 Level 5
105
PE_01 No special policy for skills development is established
Focus on the development of the technical skills
Staff is required to have technical and business knowledge.
Staff is required to have technical and business knowledge.
Core staff is required to have technical and business knowledge. Specialized technical skills are acquired through outsourcing.
PE_02 No An IT manager who is responsible for the IS/IT functions also responsible for the e-business/e-commerce functions.
An IT manager who is responsible for the IS/IT functions also responsible for the e-business/e-commerce functions.
There is an e-business manager or CIO with e-business management responsibility.
The head of the e-business project is also a member of the board of directors.
PE_03 No No No Yes Yes
PE_04 No No Yes Yes Yes
PE_05 No No Yes Yes Yes
PE_06 No No No No Yes
PE_07 No No No No Yes
106
Table 38. Maturity criteria for Work Environment dimension.
Work Environment
Question code \ Maturity level
Level 1 Level 2 Level 3 Level 4 Level 5
WE_01 No Yes Yes Yes Yes
WE_02 E-commerce/e-business development is the responsibility of technical staff.
Management considers e-business/e-commerce to be one of the many ways to reduce costs in the firm and sees expenditure on e-business/e-commerce as a cost-saving expenditure.
Management considers e-business/e-commerce to be vital for the smooth functioning of operations.
Management considers e-business as one of the vital parts of the competitive strategy.
Management considers e-business as the single most critical factor for the organization
WE_03 No Yes Yes Yes Yes
WE_04 No Yes Yes Yes Yes
107
Table 39. Maturity criteria for Strategy sub-dimension.
Strategy
Question code \ Maturity level
Level 1 Level 2 Level 3 Level 4 Level 5
ST_01 Yes Yes Yes Yes Yes
ST_02 E-commerce only strategy that is not integrated with business strategy
E-commerce strategy integrated with marketing strategy.
E-commerce strategy integrated with business strategy
E-business strategy incorporated as part of the business strategy.
E-business strategy is part of the strategic business network strategy.
ST_03 No specific approach defined.
No specific approach defined or
No specific approach defined or Strategic planning
Strategic planning Strategic thinking
108
Table 40. General information about the example company.
Question code
General questions (Company introduction)
Answer
G_01 How many employees are in your company?
~80
G_02 What is the industry of your company? web-hosting, software development
G_03 What is the country that your company operates in?
Worldwide
G_04 What kinds of products are provided by the company?
Digital products
G_05 What kinds of services are provided by the company?
Digital services
109
Table 41. Resulting answers for the dimension IT Infrastructure.
IT Infrastructure
Question code \ Maturity level
Level 1 Level 2 Level 3 Level 4 Level 5
ITI_01 Yes Yes Yes Yes Yes
ITI_02 Yes Yes Yes Yes Yes
ITI_03 Yes Yes Yes Yes Yes
ITI_04 Local group of employees
Department Central IT department Central IT department Central IT department
ITI_05 Opinion of local management
Opinion of the department In collaboration between employees and IT department
In collaboration between employees and IT department
In collaboration between employees and IT department
110
ITI_06 Independent financial, HR software packages. Independent reporting system. No centralized storage of data.
Information systems for most of the operational areas are implemented. There is a difference in available IT services between business units.
Front-office and back office systems are well integrated (no problems with data formats, automated data transfer). Some decision support systems are introduced.
The information system in the organization has features of gathering and processing data from external to the organization sources. Decision support systems for senior management are implemented. Data mining and data warehousing technologies are used in the organization. ERP, CRM and SCM systems are well integrated.
Information systems of the organization are integrated with information systems of partner organizations. Knowledge management system is implemented.
111
Table 42. Resulting answers for the sub-dimension CRM.
CRM
Question code \ Maturity level
Level 1 Level 2 Level 3 Level 4 Level 5
CRM_01 Yes Yes Yes Yes Yes
CRM_02 Yes Yes Yes Yes Yes
CRM_03 With use of features of the operational CRM system
With use of features of the operational CRM system
With use of features of analytical CRM system
With use of features of collaborative CRM system
With use of features of collaborative CRM system
CRM_04 No No No Yes Yes
112
Table 43. Resulting answers for the sub-dimension ERP.
ERP
Question code \ Maturity level
Level 1 Level 2 Level 3 Level 4 Level 5
ERP_01 Integrated ERP information system covers such business processes as accounting/finance/HR and order fulfillment (purchasing, production, delivery)
Integrated ERP information system covers such business processes as accounting/finance/HR and order fulfillment (purchasing, production, delivery)
ERP system covers most of operational business processes and has integration with front-office systems.
ERP system covers most of operational business processes.
ERP system covers all operational processes include industry-specific functions.
ERP_02 No integration.
No integration.
Integration with front-office systems (e.g., ecommerce, CRM).
Integration with front-office systems (e.g., ecommerce, CRM).
Full integration with other information systems in the organization (such as SCM, PLM)
113
Table 44. Resulting answers for the sub-dimension Web 2.0.
Web 2.0
Question code \ Maturity level
Level 1 Level 2 Level 3 Level 4 Level 5
Web_01 No Yes Yes Yes Yes
Web_02 Yes Yes Yes Yes Yes
Web_03 No Yes Yes Yes Yes
Web_04 No Only some personalized content (e.g., new news since last login)
Personalized recommendations based on the purchase history and customer' preferences.
Personalized recommendations based on the purchase history and customer' preferences.
Personalized recommendations based on the purchase history and customer' preferences.
Web_05 No Yes Yes Yes Yes
Web_06 No Yes Yes Yes Yes
Web_07 No Sometimes (by particular departments or for particular topics)
Yes. With use of specialized tools (e.g., opinion mining).
Yes. With use of specialized tools (e.g., opinion mining).
Yes. With use of specialized tools (e.g., opinion mining).
Web_08 No No No Yes Yes
114
Table 45. Resulting answers for the dimension Processes.
Processes
Question code \ Maturity level
Level 1 Level 2 Level 3 Level 4 Level 5
PR_01 Yes Yes Yes Yes Yes
PR_02 Yes Yes Yes Yes Yes
PR_03 Yes Yes Yes Yes Yes
PR_04 No Yes Yes Yes Yes
PR_05 No Yes Yes Yes Yes
PR_06 No Yes Yes Yes Yes
PR_07 No Yes Yes Yes Yes
PR_08 No Yes Yes Yes Yes
PR_09 No Yes Yes Yes Yes
PR_10 No Yes Yes Yes Yes
PR_11 No Yes Yes Yes Yes
PR_12 No Yes Yes Yes Yes
PR_13 No No Yes Yes Yes
PR_14 No No Yes Yes Yes
PR_15 No No No Yes Yes
PR_16 No No No Yes Yes
PR_17 No No No No No
PR_18 No No No Yes (if PR_17= no) or Yes/No (if PR_17= yes)
Yes
PR_19 No No No No Yes
PR_20 No No No No Yes
115
Table 46. Resulting answers for the dimension People.
People
Question code \ Maturity level
Level 1 Level 2 Level 3 Level 4 Level 5
PE_01 No special policy for skills development is established
Focus on the development of the technical skills
Staff is required to have technical and business knowledge.
Staff is required to have technical and business knowledge.
Core staff is required to have technical and business knowledge. Specialized technical skills are acquired through outsourcing.
PE_02 No An IT manager who is responsible for the IS/IT functions also responsible for the e-business/e-commerce functions.
An IT manager who is responsible for the IS/IT functions also responsible for the e-business/e-commerce functions.
There is an e-business manager or CIO with e-business management responsibility.
The head of the e-business project is also a member of the board of directors.
PE_03 No No No Yes Yes
PE_04 No No Yes Yes Yes
PE_05 No No Yes Yes Yes
PE_06 No No No No Yes
PE_07 No No No No Yes
116
Table 47. Resulting answers for the dimension Work Environment.
Work Environment
Question code \ Maturity level
Level 1 Level 2 Level 3 Level 4 Level 5
WE_01 No Yes Yes Yes Yes
WE_02 E-commerce/e-business development is the responsibility of technical staff.
Management considers e-business/e-commerce to be one of the many ways to reduce costs in the firm and sees expenditure on e-business/e-commerce as a cost-saving expenditure.
Management considers e-business/e-commerce to be vital for the smooth functioning of operations.
Management considers e-business as one of the vital parts of the competitive strategy.
Management considers e-business as the single most critical factor for the organization
WE_03 No Yes Yes Yes Yes
WE_04 No Yes Yes Yes Yes
Table 48. Resulting answers for the sub-dimension Strategy.
Strategy
Question code \ Maturity level
Level 1 Level 2 Level 3 Level 4 Level 5
ST_01 Yes Yes Yes Yes Yes
ST_02 E-commerce only strategy that is not integrated with business strategy
E-commerce strategy integrated with marketing strategy.
E-commerce strategy integrated with business strategy
E-business strategy incorporated as part of the business strategy.
E-business strategy is part of the strategic business network strategy.
ST_03 No specific approach defined. No specific approach defined or
No specific approach defined or Strategic planning
Strategic planning Strategic thinking
117
Table 49. General maturity model attributes of the SMME.
Attribute \ Model
N.A. Petrachkov
Name A Situational Maturity model for E-
business
Acronym SMME
Primary source
N. A. Petrachkov, 2012
Secondary source
-
Addressed topic
Management of IT/IS
Origin Academic
Audience Management-oriented
Year of publication
2012
Development Linear
Emphasis Non-specific
Number of stages
5
118
Table 50. Maturity model design and maturity model use attributes for the SMME.
Model Attributes
Concept of maturity Composition Reliability Mutability
Pro
cess
matu
rity
Ob
ject matu
rity
Peo
ple m
aturity
Matu
rity grid
Likert-like
qu
estion
naire
CM
M-like
Verificatio
n
Valid
ation
Form
Fun
ction
ing
SMME
Method of application
Support of application
Practicality of evidence
Self-assessm
ent
Third
-party assisted
assessm
ent
Assessm
ent b
y
certified
practitio
ners
No
sup
po
rting
materials
Textual d
escrip
tion
/ han
db
oo
k
Softw
are assessm
ent to
ol
Imp
licit
recom
men
datio
ns
Explicit
recom
men
datio
ns
SMME
119
Table 51. The questionnaire for the SMME.
Quest
ion
code
Dependenc
y
General questions
(Company
introduction)
G_01 How many employees
are in your company?
{number} to define
small, large
company
G_02 What is the industry of
your company?
G_03 What is the country
that your company
operates in?
to define
developing,
developed
country
G_04 What kinds of
products are provided
by the company?
(No products,
Physical
products, Digital
products)
G_05 What kinds of services
are provided by the
company?
(No services;
Physical services;
Digital services)
Model questions
(E-business
assessment)
IT Infrastructure
ITI_0
1
Does your company
has a web site that
Yes No
120
contains information
about the company, its'
products/services?
ITI_0
2
Can customers
perform transaction
with the company
online?
Yes No
ITI_0
3
Can customers track
the status of their
orders online?
Yes No
ITI_0
4
Who makes decision
on the acquisition of
addition functionality
for the information
systems? (in form of
independent software
packages, additional
modules)
Local group of
employees
Department Central IT
department
ITI_0
5
How the need for the
additional
functionality is being
recognized?
Opinion of local
management
Opinion of the
department
In
collaboration
between
employees
and IT
department
121
ITI_0
6
What is best
represents
organization's
information system
architecture?
Independent
financial, HR
software
packages. No
centralized
storage of data.
Independent
financial, HR
software
packages.
Independent
reporting system.
No centralized
storage of data.
Information
systems for
most of the
operational
areas are
implemented.
There is a
difference in
available IT
services
between
business
units.
Front-
office and
back
office
systems
are well
integrated
(no
problems
with data
formats,
automate
d data
transfer).
Some
decision
support
systems
are
introduce
d.
The
informatio
n system
in the
organizati
on has
features of
gathering
and
processing
data from
external to
the
organizati
on
sources.
Decision
support
systems
for senior
managem
ent are
implemen
ted. Data
mining
and data
warehousi
ng
technologi
es are
used in
Informati
on
systems of
the
organizati
on are
integrated
with
informatio
n systems
of partner
organizati
ons.
Knowledg
e
managem
ent system
is
implemen
ted.
122
the
organizati
on. ERP,
CRM and
SCM
systems
are well
integrated
.
CRM
CRM
_01
Is CRM system used in
the organization?
Yes No
CRM
_02
Does customer data is
being analyzed?
Yes No
CRM
_03
CRM_02 =
Yes
How customer data is
being analyzed?
With use of the
spreadsheets or
statistical
packages
With use of
features of the
operational CRM
system
With use of
features of
analytical
CRM system
With use
of
features
of
collaborat
ive CRM
system
CRM
_04
CRM_01 =
Yes
Is CRM fully
integrated into the
Information system of
the organization?
Yes No
123
ERP
ERP_
01
What is the scope of
the implementation of
the ERP system?
Internally
developed or out-
of-the-box
independent
software
packages for
accounting/finan
ce/HR
Integrated ERP
information
system covers
such business
processes as
accounting/finan
ce/HR and order
fulfillment
(purchasing,
production,
delivery)
ERP system
covers most
of operational
business
processes.
ERP
system
covers all
operation
al
processes
include
industry-
specific
functions.
ERP_
02
What is the level of
integration between
ERP and other
information systems?
No integration. No integration. Integration
with front-
office systems
(e.g.,
ecommerce,
CRM).
Full
integratio
n with
other
informati
on
systems
in the
organizati
on (such
as SCM,
PLM)
Web 2.0
Web_
01
Does your company
use web 2.0 tools to
communicate with
customers?
Yes No
Web_ Does your company Yes No
124
02 use web 2.0 tools
internally?
Web_
03
Web_01 =
Yes
Does your company
has a person who is
responsible for the use
of Web 2.0 tools to
communicate with
customers?
Yes No
Web_
04
Do customers see
personalized
recommendations and
content when they log
on to the web site?
No Only some
personalized
content (e.g.,
new news since
last login)
Personalized
recommendat
ions based on
the purchase
history and
customer'
preferences.
Web_
05
ITI_01 = Yes Can customers write
reviews on the website
for products\services?
Yes No
Web_
06
ITI_01 = Yes Can customers rate
products\services on
the website?
Yes No
Web_
07
Does your company
gather and analyze
data from the
Internet?
No Sometimes (by
particular
departments or
for particular
topics)
Yes. With use
of specialized
tools (e.g.,
opinion
mining).
Web_
08
Does you company use
Web 2.0 tools to
collaborate with other
companies?
Yes No
125
Processes
PR_0
1
Does your company
explicitly use specific
practices for e-
commerce/e-business
implementation?
Yes No
PR_0
2
Are specific goals for e-
business/e-commerce
projects are
formulated?
Yes No
PR_0
3
For each e-
commerce/e-business
project is the scope of
the work is identified
and outcomes are
defined?
Yes No
PR_0
4
Have your company
established a policy for
planning and
performing e-
commerce/e-business
activities?
Yes No
PR_0
5
Have you company
established objectives,
requirements and
plans for the e-
commerce/e-business
activities?
Yes No
PR_0
6
Does your company
provide adequate
Yes No
126
resources for
performing the e-
commerce/e-business
activities?
PR_0
7
Have you company
assigned responsibility
for performing the e-
commerce/e-business
activities?
Yes No
PR_0
8
Does your company
provide training for
people who are
involved in
supporting/performin
g the e-commerce/e-
business activities?
Yes No
PR_0
9
Have relevant
stakeholders are being
identified and involved
in the e-commerce/e-
business activities?
Yes No
PR_1
0
PR_05 = Yes Does e-commerce/e-
business process is
being monitored
against the plan and
corrected when
needed?
Yes No
PR_1
1
PR_05 = Yes Does the e-
commerce/e-business
process has been
Yes No
127
evaluated against
requirements,
objectives and
standards and non-
compliance has been
reported?
PR_1
2
Is senior management
involved into
reviewing the
activities, status and
results of the e-
commerce/e-business
process?
Yes No
PR_1
3
Have you company
established the
description of a
defined e-business
process and this
description is being
maintained
(periodically
updated)?
Yes No
PR_1
4
Does your company
collect measures,
measurement results,
and improvement
information derived
from planning and
performing the e-
business process for
future improvement of
Yes No
128
the organization's
processes?
PR_1
5
Have your company
established
quantitative objectives
for the e-business
process about quality
and process
performance based on
customer needs and
business objectives
and these objectives
are being maintained?
Yes No
PR_1
6
Is the performance of
one of more sub-
processes of the e-
business process has
been stabilized so it is
possible to determine
its ability to achieve
established
quantitative quality
and process
performance
objectives?
Yes No
PR_1
7
Have your company
performed re-
engineering of
business processes
Yes No
129
before the
implementation of the
e-business project?
PR_1
8
Have your company
performed re-
engineering of
business processes
after the
implementation of the
e-business process (or
after the beginning of
the e-business
project)?
Yes No
PR_1
9
Have your company
ensured the
continuous
improvement of the e-
business process in
fulfilling the relevant
business goals of the
organization?
Yes No
PR_2
0
Is it possible to
identify root causes of
problems in the e-
business process and
correct them?
Yes No
130
G_04 =
Tangible
products
SCM
SCM_
01
Have your company
defined and
documented basic
SCM processes?
Yes No
SCM_
02
Is SCM recognized as a
strategic tool in your
company?
Yes No
SCM_
03
What is the level of
cooperation in the
SCM domain between
your company,
vendors, and
customers?
No defined
collaboration
activity
Teams that share
common
measures and
goals
Shared
business
process
Multi-
firm SCM
team with
common
processes,
goals and
broad
authority
SCM_
04
Does your company
focus on the
continuous
improvement of the
SCM process (such as
elimination of the root
cause and performance
improvements)?
Yes No
131
SCM_
05
What is the level of
implementation of the
SCM practices?
No best practices
recognized
Basic practices Advanced
SCM
practices
(such as
collaborative
forecasting,
planning with
customers
and
suppliers).
SCM_
06
Do SCM teams set
goals and achieve
them?
Yes No
SCM_
07
Is SCM process
performance is very
predictable and targets
are reliably
achievable?
Yes No
SCM_
08
Are performance and
reliability of the multi-
firm supply chain
system are measured?
Yes No
People
PE_0
1
In what way e-business
related skills are
developed in your
company?
No special policy
for skills
development is
established
Only specialized
skills are trained
when needed
Focus on the
development
of the
technical
skills
Staff is
required
to have
technical
and
business
Core staff
is
required
to have
technical
and
132
knowledg
e.
business
knowledge
.
Specialize
d
technical
skills are
acquired
through
outsourci
ng.
PE_0
2
PR_07 = Yes What is the level of the
person who is
responsible for e-
business/e-commerce
development?
An IT manager
who is
responsible for
the IS/IT
functions also
responsible for
the e-business/e-
commerce
functions.
There is an e-
commerce/e-
business project
manager with
middle
management
status.
There is an e-
business
manager or
CIO with e-
business
management
responsibility
.
The head
of the e-
business
project is
also a
member
of the
board of
directors.
PE_0
3
Does e-business
function in your
company recognized as
an integral part of the
company?
Yes No
PE_0
4
Does staff involved in
the e-commerce/e-
business process also
involved in the process
Yes No
133
of
capturing/documentin
g their knowledge and
experience with e-
commerce/e-business
related work?
PE_0
5
Does experienced e-
business/e-commerce
has responsibility for
providing guidance for
the new employees?
Yes No
PE_0
6
Does your company
uses outsourcing for
staff management?
Yes No
PE_0
7
Does your company
has an alliance with
other organizations to
share e-business
function and e-
business staff?
Yes No
Work Environment
WE_
01
Does your company
have a formal structure
for e-commerce/e-
business function?
Yes No
134
WE_
02
What is the position of
the e-commerce/e-
business function in
the organization?
No dedicated
position. E-
commerce/e-
business
considered of
little importance.
E-commerce/e-
business
development is
the responsibility
of technical staff.
Management
considers e-
business/e-
commerce to
be one of the
many ways to
reduce costs
in the firm
and sees
expenditure
on e-
business/e-
commerce as
a cost-saving
expenditure.
Managem
ent
considers
e-
business/
e-
commerc
e to be
vital for
the
smooth
functioni
ng of
operation
s.
Managem
ent
considers
e-business
as one of
the vital
parts of
the
competitiv
e strategy.
Managem
ent
considers
e-business
as the
single
most
critical
factor for
the
organizati
on
WE_
03
Does your company
have established
organization-wide
architecture of the e-
commerce/e-business
function?
Yes No
WE_
04
Does your company
have established
standards for e-
commerce/e-business
related functions?
(such as data transfer,
security)
Yes No
135
Strategy
ST_0
1
Does your company
have established e-
commerce/e-business
strategy?
Yes No
ST_0
2
ST_01 = Yes What is the level of
development of the e-
commerce/e-business
strategy?
E-commerce only
strategy that is
not integrated
with business
strategy
E-commerce
strategy
integrated with
marketing
strategy.
E-commerce
strategy
integrated
with business
strategy
E-
business
strategy
incorpora
ted as
part of
the
business
strategy.
E-
business
strategy is
part of the
strategic
business
network
strategy.
ST_0
3
What is the approach
to form strategy in
your company?
No specific
approach
defined.
Strategic
planning
Strategic
thinking
136
Figure 5. E-business structure as depicted by Chaffey [9]
137
Figure 6. E-business architecture as depicted by Kalakota [46]
138
Figure 7. E-business architecture according to Papazoglou and Ribbers [69]
139
Expert feedback #1 “Capgemini” (interview notes)
The dimensions of the situational maturity model for e-business are not balanced.
The IT Infrastructure dimension has 3 sub-dimensions, while Processes and Work
Environment has only one and the dimension People has no sub-dimensions. For
example, for dimension Processes could there be such sub-dimensions as CRM
processes, Service processes, Marketing processes? For dimension Work
Environment could there be such sub-dimensions as Culture, Business/IT
alignment? For the dimension IT Infrastructure could there be sub-dimension of
Business intelligence (BI), Business Process Management (BPM)?
In the research the influence of such contemporary technologies as cloud computing,
mobile commerce, and tablet PCs is not covered. Also it would be nice to take into
account the process of globalization.
It is not explicitly stated from which perspective the assessment is being done. From
the historical perspective identified levels are not in the correct order. The social
commerce stage should happen after the e-business stage. From the perspective of
modern possibilities it is possible that identified stages are in the correct order. It
should be stated explicitly which perspective is adopted in the research.
The GPIS model and the process of levels definition should be explained in more
details. It is not clear how levels were obtained.
In general, the situational maturity model for e-business is aligned to the underlying
research.