E‐business disaster: Why an ambitious and expensive project failed

Abstract

Purpose

Reviews a case study of a failed ambitious eCRM project.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments.

Findings

After three years and $300m of investment, an e‐business initiative undertaken by a global technology solutions organization was recently branded a failure. The initiative, known here as “eCRM”, was meant to link sales, marketing, fulfilment, manufacturing and distribution systems together with the aims of reducing supply chain stock levels, increasing responsiveness to consumer demands, and increasing profit margins by providing a direct link to customers. But all the project finally achieved was a web‐interface for online sales. Stephen McLaughlin of the School of Business and Management in Glasgow, UK, has analyzed the case study to put forward lessons to learn and an e‐business strategy framework.

Practical implications

Puts forward a strategy for success for future e‐business projects.

Originality/value

Analyzes success and failure factors in e‐business initiatives and offers a framework for success.

Citation

(2009), "E‐business disaster: Why an ambitious and expensive project failed", Strategic Direction, Vol. 25 No. 5, pp. 21-23. https://doi.org/10.1108/02580540910952064