CASE DESCRIPTION
|
|
Many of the skills needed to perform the business investigation, formulate the strategy, and carry out other sections of the intended model are not available in a typical small business. The knowledge needed to carry out many of these functions needed to be embedded in the model. Thus, it was necessary to design the model such that the knowledge required was built into the artifact.
The challenge came to take the conceptual model developed in Phase one and convert it into an applied version - an effective decision support tool for small businesses to use when implementing a Web site to interact with customers. The initial idea was to develop a manual or book that small businesses could work through and use to "record" the results of the analyses that they carried out along the way. This would then lead to recommendations as to what Web site features they should implement. There were two major concerns with this approach. The first was that if a small businessperson wished to go back and alter any of the data entered, he or she would have to use an eraser or "liquid paper." The second concern was how to lead the person to the eventual recommendation once the analysis was completed. The need to follow the somewhat complex paths that were designed through to the various recommendations might have been enough to drive the small businessperson to distraction and, as a subsequent decision, to abandon the process. It was finally decided that the spreadsheet package, Microsoft Excel, was the solution. Most small businesses that have computers use a spreadhsheet package, and the majority of spreadhsheet packages in use are Microsoft Excel. The spreadsheet has long been recognized as a tool that can be used to support basic decision-making. In this case, it provided a means by which the complex path from analysis to recommendation could be handled automatically by the software.
The following case describes the development of the spreadsheet model, and its subsequent refinement by a series of focus groups of small business counsellors.
A Model for Small Businesses to Interact with Customers Using the Internet
Burgess and Schauder (2000a) identified a number of steps that are common to models that can be used to assist firms to identify strategic IT ideas (such as Porter & Millar, 1985; Barton & Peters, 1990; Osterle, 1991) and/or electronic commerce opportunities (Marchese, 1998; Al Moumem & Sommerville, 1999). These steps included a need for a thorough business investigation. This is typically the first step in any model and needs to occur to increase the likelihood that decisions to be made later in regards to Web design and content are based upon a sound knowledge of the firm. Typical analysis tools used at this stage are Critical Success Factors (CSFs) and SWOT Analysis.
The SWOT analysis has been traditionally used in the marketing or economics areas of the business. The term SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. An analysis is performed on the various areas of the organization to identify current or potential strengths and weaknesses when compared with other competitive forces. From this analysis, the organization identifies actual or potential opportunities to gain strategic advantage or threats to the organization's well being. Actions taken by the organization to take advantage of an opportunity are proactive. Actions taken by the organization to combat a threat are reactive (Kotler et al., 1989). The SWOT analysis also works well with the idea of the structuration theory, as it helps to examine the relationships between participants in the organizational field.
Electronic commerce is seen as a way in which small businesses can compete with large businesses (DIST, 1998; Penhune, 1998), but small businesses have little time or resources to address potential changes to their current activities. Many lack the availability of technical expertise and avoid proper planning techniques to help them to take advantage of opportunities that may present themselves (DIST, 1998; Engler, 1999; Conhaim, 1999; Conroy, 1999). In order to address some of these problems facing small businesses that wish to use the Internet to interact with customers, particularly those relating to a lack of proper planning techniques, a conceptual version of a model to guide small businesses was proposed by Burgess and Schuder (2000b). Figure 2 shows the model that was developed.
The model is based upon the major steps in other IT and e-commerce models. It represents an attempt to address the specific needs of small businesses (refer to Burgess & Schauder, 2000a) by guiding them through a proper planning process that is relatively easy to comprehend.
The initial stage of the model, the business investigation, involves a modified SWOT analysis. The firm's internal and (some) external forces are examined. Internally, the firm's resources in relation to time, money and expertise are examined, as well as the characteristics of the firm's goods and services. The firm's overall strategy is also examined, as a firm wishing to grow in size may require a more "aggressive" Web strategy than a firm that is satisfied with its existing customer base.
Externally, the Web sites of competitors are examined, as well as the ability of customers to access the firm's Web site.
Other steps of the model after the business investigation refer to identification of the firm's overall Web site strategy, what Web site features they are going to implement, what method they use to implement these features, how they promote the Web site and how they evaluate its success.
The next stage was to develop it into a more detailed, "usable" model. This applied version of the model consisted of two major components: a procedures manual (showing the various steps of Business Investigation, Strategy, and so forth) and a spreadsheet program, for recording the results of the analysis provision of recommendations. It is this model which is being tested in this study.
The Choice of a Spreadsheet
The major problem faced in this project was how to take the conceptual model and turn it into the applied model. The initial idea was to develop a manual or book that small businesses could work through and use to "record" the results of the analyses that they carried out along the way. This would then lead to recommendations as to what web site features they should implement. There were two major concerns with this approach. The first was that if a small businessperson wished to go back and alter any of the data entered, he or she would have to use an eraser or liquid paper. The second concern was how to lead the person to the eventual recommendation once the analysis was completed. The need to follow the somewhat complex paths that were designed through to the various recommendations might have been enough drive the small business person to distraction and a subsequent decision to abandon the process.
It was finally decided that the spreadsheet package, Microsoft Excel, would provide the solution. Most small businesses that have computers use a spreadsheet package, and the majority of spreadsheet packages in use are Microsoft Excel. The spreadsheet has long been recognized as a tool that can be used to support basic decision-making. It provides users with the capability to alter figures and to see the effects the alterations have on recommendations (Stair & Reynolds, 1999). In this case, it provided a means by which the complex path from analysis to recommendation could be handled automatically by the software.
The programming language that is part of Micrsoft Excel, Visual Basic for Applications, provided the flexibility to alter the software and the interface easily, based upon the suggestions of the micro focus group participants.
The Decision Making Process
As was mentioned earlier, small business counsellors were asked to identify and measure a number of elements within the business and external to the business. It was considered important that small business practitioners, particularly those that have dealt with many small businesses in a range of areas (business planning, marketing, and so forth), should review the model. This was to expose the model (developed in an academic environment) to "real" small business applicability. The model was presented to small business consultants via three separate "micro" focus groups.
The small business consultants were all from the Small Business Counselling Service (SBCS). This is a service provided by a section of the Victorian State Government, Small Business Victoria, Australia. The majority of the counsellors are aged 50 or over and have had vast experience in the counselling areas identified.
| Note | the eventual target group for this model is small businesses. This paper describes the development of a spreadsheet application as a tool for knowledge management in small businesses. The counselors were selected to assist in the refinement of the model due to their vast experiences in relation to dealing with small businesses. Some of them are using the spreadsheet model in its various forms currently, but the counselors are not the eventual target group—small businesses are. |
Focus Groups
A focus group involves an organized discussion with a selected group of individuals to gain information about their views and explore their experiences of a topic area. A focus group relies on the insight and data produced by the interaction between participants. The main reason for using a focus group as a research tool is to examine participants' attitudes, feelings, experiences and reactions in a way that would not be possible, say, with one-to-one interviewing, observation or surveys. They are more likely to be revealed via the social gathering and interaction that occurs when participating in a focus group. The interaction is important as the interactions highlight the participants' views of the topic and the language that they use to discuss the topic. The interaction allows participants to ask questions of each other and to re-evaluate and reconsider their own views (Gibbs, 2000).
One of the major difficulties associated with organizing focus groups is to arrange for participants to be at the same place at the same time, especially if the participants have a busy schedule. This is particularly the case for counselors in the SBCS, who often find themsleves traveling to meet with their clients at a time that suits the clients. This was a factor in the number of responses received after the initial request for participation email was sent out.
The number of participants in a focus group are usually six to ten, with as high as fifteen and as low as four (Gibbs, 2000). If a group is too small, there is a chance that one or two group members may intimidate the group (Zikmund, 2000). Given the age and experience of the SBCS counselors, it was felt that the interaction provided (even in groups of three and four participants) would be so valuable that the sessions should continue. The first two groups had three participants and the third group had four participants. As such, they have been dubbed "micro-focus groups." Langer (1999) observes that "mini-focus groups" of four to six respondents have their place, especially where participants are highly opinionated, perhaps self-important, shy or hard to control. Another use of the mini-focus group is where detailed probing of participant responses occurs.
Small Business Victoria provided a list of the SBCS counselors and their email addresses to the researcher. From the list of 40 Counselors, 33 had email addresses. An emial message was sent out on November 2000 to all counselors with email addresses to participate in the focus groups, with a choice of three possible attendance dates. Of the 33 messages that were sent out, six were returned as invalid email addresses. Of the 27 remaining, 13 responses were received in total. Six counselors responded that they were unable to attend due to lack of time (three), distance to travel (two) or personal reasons (one). Responses were received from seven counselors willing to attend. In the final analysis, three counselors agreed to attend on Saturday, November 25, 2000 (the first "micro" focus group) and four agreed to attend on Saturday, December 9, 2000. One counselor did not attend on December 9th (leaving three in the second "micro" focus group). Each counsellor was made aware that the sessions would be taped (audio) and that his or her contributions would be anonymous. Minor refinements of the model were made between the first micro focus group and the second micro focus group. After the December micro focus group, a final combined group was arranged for February 3, 2001. Two members from the first group and two members from the second group attended this session. Of the others, one had a prior commitment and the other was unwell on the day. A number of alterations were made in the time between the second micro focus group and the final, combined group.
Two of the elements that affected the decisions made by the model in relation to the cost of implementation of the Web site and the skills needed to implement it were the financial outlay that the business was prepared to make and the skill level of employees.
Financial Outlay
In determining the mechanisms for asking small businesses to estimate the capital that they were prepared to commit to the Web site, users were provided with a range of four "typical" options as the estimated financial outlay for the project, ranging from the inexpensive (a small Web site) to the most expensive (a larger Web site with interactive features). A range of setup and maintenance costs was provided for each option in the accompanying manual. In this way, some guidelines were provided for the small businesses as to what they would get for their money.
Employee Expertise
This section allowed the expertise level of employees who would be associated with the Web site to be entered. Again, a range of choices were provided and explained in the manual. Users of the model would then select the option related to the "most skilled" employee that would be working on the web site.
Cost of Implementation and Skills Needed to Implement the Web Site
The Cost of the Web Site
This section allowed the user to accept or reject the recommendations of the previous section for each Web site feature. Upon choosing to implement a feature, a judgement was made by the system as to whether or not it could be implemented within budget. This is based upon the costs of the Web site being affected by the following (Burgess & Schauder, 2001):
-
The cost of hosting basic information provision features is relatively small. This statement does not take into account the time taken to transfer the information to the Web site initially and the time needed to update it.
-
The ongoing cost of providing product catalogues does tend to rise as the firm increases the number of products listed on the Web site.
-
The ongoing and transaction-based costs increase when online payment features are introduced.
-
Options that allow some interaction with the Web site (more than just viewing information) require a greater outlay.
The various Web site features were divided into the following categories (these can be viewed as "Cost Driverd" in the Implementation screen of the software). Each Web site feature was assigned a value from "1" to "7" The ability to implement the feature was based upon the outlay selected in the Financial Outlay section of the Business Investigation. These outlays were given a rating ranging from "1" for the most inexpensive (a small Web site developed with a package or wizard) to "4" for the most expensive (a larger Web site containing a number of interactive features).
The screen (refer to Figure 3) allowed users to select particular Web site features for implementation, based upon the recommendation made in the previous section. It then made a judgement as to the ability of the firm to develop the site internally, based upon entries that had been made in the Financial Outlay and Employee Expertise sections of the Business Investigation stage.
Figure 3: The Implementation Screen
The model provided a recommendation on whether it was considered possible to implement the Web site. Table 1 shows the logic behind the recommendation: based upon the cost driver, number of online products, transactions per month and the level of outlay chosen. This represented some of the "knowledge" embedded in the artifact.
| Cost Driver | Rating | Implementation Message Provided |
|---|---|---|
| Static – inexpensive | 1 | YES |
| Static - may rise with products | 2 | If < 15 products or Outlay Rating > 1 then YES, else show NO - too many products - choose more expensive outlay |
| Static - may rise with sales | 3 | If < 100 online transactions/month or Outlay Rating > 1 then YES else show NO - too many sales transactions - choose more expensive outlay |
| Interactive - standard feature | 4 | If Outlay Rating > 2 then YES, else show NO - INTERACTIVE option - choose more expensive outlay |
| Interactive – Relies on number of products | 5 | If < 15 products and Outlay Rating > 2 then YES If < 15 products and Outlay Rating = (1 or 2) then show NO - INTERACTIVE option - choose more expensive outlay, else If Outlay Rating > 3 then YES, else show NO - too many products - choose more expensive outlay |
| Interactive - Relies on products and sales | 6 | If <100 online transactions/month and Outlay Rating > 2 then YES If < 100 online transactions/month and Outlay Rating = (1 or 2) then show NO - INTERACTIVE option - choose more expensive outlay, else If Outlay Rating >3 then YES, else show NO - too many online transactions - choose more expensive outlay |
| Needs IT expertise | 7 | If Outlay Rating = 4 then YES, else show NO - INTERACTIVE option - choose more expensive outlay |
Skills Needed to Implement the Web Site
This section also provided a recommendation as to how the Web site could be developed, internally or externally. The recommendation was based upon the employee expertise identified in the Business Investigation stage and the highest rating cost driver (as per Table 1) for the Web site features that were selected by the user.
Table 2 represents the logic used. If there was no internal experience at developing Web sites, the recommendation was that the Web site be developed externally. If there was some internal experience (either by the development of simple HTML pages or the use of a package or wizard), the option was provided to develop the Web site internally, provided that it does not contain any features that require IT expertise. If there was internal IT expertise, the option was provided to develop the Web site internally irrespective of the level of difficulty. Again, the use of a spreadsheet package allowed this knowledge to embedded within.
| Level of Employee Website Expertise | Website Development Message Provided |
|---|---|
| None | No Website experience: Recommend External Setup |
| Created Simple HTML Pages | If Static website (High rating <=3) then show Static Web Site: Internal Setup Possible, else If Interactive website (Highest rating >3 and <=6) then show Interactive Web Site: Possible internal setup: Template/Package, else show Website Experience required: Recommend External Setup |
| Used Template or Wizard | If Static website (High rating <=3) then show Static Web Site: Internal Setup Possible, else If Interactive website (Highest rating >3 and <=6) then show Interactive Web Site: Possible internal setup: Template/Package, else show Website Experience required: Recommend External Setup |
| Experienced | If Static website (High rating <=3) then show Static Web Site: Internal Setup Possible, else If Interactive website (Highest rating >3 and <=6) then show Interactive Web Site: Possible internal setup: Template/Package, else show Website Experience required: May be available internally |
|
|
EAN: 2147483647
Pages: 367