E-Business in the Global Automotive Industry: Key Value Propositions

Abstract

This chapter reviews the components of e-business from a procurement perspective in order to explore the key value propositions of e-business practices in the global automotive industry. It is easy to simply state that a product or service “adds value” to a firm’s operations. It is critical that the value proposition of e-business be analyzed from a rational perspective by any organization competing in the “post-irrational exuberance” era of the digital economy. Using an exploratory case study of the automotive industry, the key questions for identifying a true value proposition of e-business are identified, including their e-procurement, e-catalog order processing, e-auction and e-capacity systems. We intend this chapter to be helpful to practitioners, researchers, and students who either are contemplating updating their legacy e-business systems and/or trying to gain insight into the value proposition of these systems. It is undisputed that e-business will bring at least some level of benefit to a vast majority of organizations, regardless of size or industry. We intend this chapter to be valuable for evaluating and implementing a successful e-business strategy, structure, and solution.