An E-Channel Development Framework for Hybrid E-Retailers

Abstract

Due to the profound impact of e-commerce on organizations, e-channel development emerged as one of the most important challenges that managers face. Unfortunately, studies indicate that managers in most large companies are still unclear about an e-commerce strategy, and tend to lack adequate e-commerce development expertise. Poorly planned and developed e-commerce channels add little value to organizations. Furthermore, these poorly developed e-channels may even have negative impact on their organizations by confusing and disappointing customers who value a seamless cross-channel experience. To develop an e-channel that delivers higher utility to customers and generates sustainable long-term profits, managers need to analyze how an e-commerce channel affects the performance of existing channels and develop a company-wide e-channel development program. Based on a number of e-commerce case studies, we developed an e-channel development framework that consists of five step-by-step phases: (1) strategic analysis; (2) e-channel planning; (3) e-channel system design; (4) e-channel system development; and (5) performance evaluation and refinement. This framework helps managers evaluate the impact of e-commerce channels on organizational performance and determine the most appropriate channel design and integration mechanisms for the achievement of business strategies. This paper also discusses impact of e-channel structures on organizational performance.