This chapter aims to show the findings combined from the researched instance survey in order to supply the whole image of how the directors from the selected industries leverage the chances which stem from the transmutation of VVC and its deductions on competition.
The e-business development in the last two decennaries increased the demand for e-banking services. As a response directors began to make pure on-line Bankss ( ICA Banken, Egg, SkandiaBanken ) or offer double combinations Bankss ( Glitnir Bank, Hansabank ) in order to leverage the new chances. This transmutation of the banking industry affected the bulk of VC elements. The findings from the instance surveies show that the elements which were affected in higher grade are the human resources, houses ‘ substructure, operation and services. All these deductions can be explored by analysing their impact on the variables of the developed conceptual models.
The instance surveies illustrate that in the Banking industry the companies achieved higher efficiency and effectivity through e-business by offering the basic services via e-banking. The dealing efficiency and effectivity as it can be seen from the conceptual model 3.1 and 3.2 is affected positively by the development of e-banking due to the mechanization of simple banking services. This factor increases the available clip for human resources in the subdivisions to execute more complicated and higher border fiscal services ( Glitnir Bank, Hansabank ) , which are considered critical for the competitory place of companies in the industry. In footings of clients the efficiency and effectivity is achieved by offering 24 hours and 365 yearss banking services through e-banking, which are clip efficient and cost effectual due to the deductions from cost effectual construction. In add-on, from the conceptual models 3.1 and 3.2 and the analysis of the instance surveies, it can be seen that there is a positive impact of concern theoretical accounts on efficiency and effectivity of the concern procedure, which generate added value by cut downing the needful subdivisions, dealing cost and the needed human resources. Representatively in the instance of Hansabank the dealing cost of e-banking is 5 % compared with minutess from traditional Bankss ( Gantzhorn,2008 ) and in the instance of SkandiaBanken, merely 10 % of human resources is needed compared to Bankss in the market place ( Gantzhorn,2008 ) . Furthermore, taking into history that the 55 % ( Ramboll Management,2008 ) of the operational cost in banking industry is the cost of human resources it can be realized that the concern theoretical accounts do non merely bring forth value by positioning the company otherwise but they besides affect its competitory kineticss. However, the researched instance surveies do non demo that from the development of e-banking, the companies began the procedure of cut down on human resources. Alternatively the available information shows that there is a displacement in the performed undertakings to more sophisticated services ( Glitnir Bank, Hansabank ) . This factor leads the research to see that the double combination Bankss try to leverage the advantages from both markets at upper limit by modifying their VC in order to run into the new market tendencies and remain competitory. Another factor which supports this consideration is the accent given to client relationship direction, which monitors the clients ‘ behaviour, desires and provides advices for fiscal services, with the purpose to introduce services, which will increase their satisfaction, efficiency, effectivity and trust ( Egg, SkandiaBanken ) by roll uping the needed information in order to recognize how they should develop their digital assets to run into the new market tendencies.
From the above analysis it can be seen that the new concern theoretical accounts which positioning the Bankss otherwise in the industry have a critical function in bettering their efficiency and effectivity, but their function is non eliminated merely in this factor. The new concern theoretical accounts offers the chance to pull out value from other industries such as Mobile ( Glinir Bank ) and food market ( ICA Banken ) , or from their spouses ( Egg/Citybank, ICA Banken/ Nordnet ) . Furthermore, in footings of VC integrating with the value system the critical function of invention in the value creative activity procedure can be realized from the bulk of the instance surveies which extract value chiefly from fresh concern theoretical accounts ( ICA Banken ) , services ( SkandiaBanken ) and distribution channels ( Hansabank ) . Another of import function of concern theoretical accounts in the research is their impact on competition due to their impact on efficiency of the concern procedure, which in bend affect the competitory place. Although in order to recognize if the directors in the banking industry use the e-business as complementary to their strategic marks critical is to analyse the power of cyberspace. To accomplish this undertaking of import is the conceptual model 3.2 which show that the Bankss which develop their activities through double combinations ( Glitnir Bank, Hansabank ) use the power of cyberspace as complement to their marks to increase the efficiency of the concern procedure. Although, in the instance of pure on-line Bankss ( ICA Banken, Egg, SkandiaBanken ) the power of cyberspace is used in puting their strategic marks which primary are based on it.
The peculiar industry offers the chance to directors to recognize how the new concern theoretical accounts change the premise on value creative activity and the competition with traditional companies. Harmonizing to the researched instance surveies in the industry it can be seen that the elements of value system which are affected primary from the development of telecommunication concerns through cyberspace are marketing and gross revenues and supply concatenation. In order to recognize the deduction of the e-business on the value creative activity logic and competition the analysis will analyse them harmonizing to the variables and findings from the conceptual models 3.3 and 3.4.
The conceptual model 3.3 shows that the development of e-business activities have positive impact on companies efficiency and effectivity. This factor is achieved in assorted manner by optimising the supply concatenation ( Cosmote ) , the effectual selling through marketspace which is able to entree clients worldwide ( Budget Telecom ) and the services sweetening, which can be delivered in an alternate manner of fixed web such as Voip telephone and IPTV ( Upnet Taide Baltic, Grupalia Internet S.A ) . These alternate services cut down important the operating cost of companies in the industry and accordingly affect their competitory place ( Del Percio, 2006 ) . Furthermore, the instance surveies illustrate that the companies extract value from the integrating of their VC with the value system of providers ( Cosmote, Budget Telecom ) , consultancy companies ( Upnet Taide Baltic ) , from related sectors such as Voip and IPTV ( Upnet Taide Baltic, Grupalia Internet S.A. ) and invention ( Upnet Taide Baltic, Grupalia Internet S.A. ) . In add-on, the instance survey of Grupalia offer the chance to recognize the importance of physical assets such as the optical web, which enables the company to spread out its boundaries in comparative sectors and increase the added value for the company and for clients by offering its services with lower monetary values due to the achieved lower cost of informations transmittal by leveraging the same distribution channel. In term of competition it can be seen from the conceptual model 3.4 that the companies can be divided in three classs. On one side is Cosmote, which has been developed e-procurement platform CosmoOne, which considered as complement to its overall strategic marks due to the factor that it is leveraging the efficiency of the marketspace as supportive component of its competitory place. On the other manus companies such as Upnet Taide Baltic and Grupalia Internet S.A have developed advanced concern theoretical accounts which place them as alternate picks of fixed telephone webs and to telecasting web suppliers by offering Voip telephone and IPTV services. Considered these factors it can be realized that their strategic marks are based on the power of cyberspace, which provides them the chance to vie harmonizing to three generic schemes with better conditions in term of pricing because of the reduced operating cost and fixed cost considered the factor that the needful investing for Voip and IPTV are important lower ( Bijil and Peitz, 2010 ) . In the 3rd class is the Budget Telecom, which is intermediary in the industry and its concern theoretical account could non be without the power of cyberspace. This factor leads the research to see that the deductions of e-business have critical function in its overall scheme and particularly on selling and gross revenues which are immediately related to its success.
Bridging theory with the pattern.
This chapter aims to measure the pattern of directors in the two industries ( Banking and Telecommunications ) harmonizing to the literature which have been developed from the chief writers in order to research the deductions of the transmutation of VC through e-business. The results will demo at which extent the directors leverage the chances which steam from this transmutation, the lessons learned and what really happens in the argument on competition.
Harmonizing to Rayport and Sviokla ( 1995 ) the companies develop their VC in marketspace in three phases visibleness, mirroring capablenesss and new client relationships. This stages theoretical account of e-business activities can be spotted particularly in the banking industry where at the first phase the directors realized the effectivity through e-business and developed their activities online. The 2nd phase Begins by replacing continues physical activities with practical, parallel to the development of e-baking platforms, which have been developing in order to switch all the possible activities online ( Hansabank, Glitnir Bank, EGG ) . The 3rd phase can be spotted from the new client relationship direction which aims to pull out valuable information in order to add new services or develop the stimulant ( Hansabank, EGG ) . Furthermore, this stages theoretical account offers the chance to recognize how the directors in pattern use the information flow in order to enable the value adding procedure in the marketspace, which begins harmonizing to Rayport and Sviokla ( 1995 ) from garnering the information, form it, synthesise and administer it to the clients. Another suggestion from Rayport and Sviokla ( 1995 ) which is followed by directors in both industries is that the successful organisations should take advantages from both of the value chains the VVC and PVC. In the banking industry this factor is achieved by the development of double combination Bankss ( Glitnir Bank, Hansabank ) and pure on-line Bankss, which have developed subdivisions that provide advices in the market place ( ICA Banken ) . In add-on, to these waies provided by Rayport and Svikola ( 1995 ) they argued that the investing in digital assets could guarantee returns for long period and has critical function to cut down the variable cost of company which in bend will impact its competitory place. In pattern it can be seen in both industries from continues development of e-banking platforms or investing in Voip and IPTV. Another of import observation from the writers which is confirmed from the pattern is that the e-business construct enables the enlargement of companies to new markets or industries with comparatively low investing ( ICA Banken, Egg, SkandiaBanken, Budget Telecom, Grupalia Internet SA ) .
Harmonizing to Porter ‘s analysis ( 2001 ) one of the most of import features is the integrating of VC with the value system, the models 3.1 and 3.4 illustrate that 77.7 % of the researched companies extract value from this integrating. Another common observation with Porter ( 2001 ) was the integrating of supply concatenation direction with the client relationship direction, which is more obvious in the instance survey of Cosmote. Furthermore, Porter ( 2001 ) argued that the development of e-business activities will hold a consequence to replace some physical activities with practical or do the physical activities more cost effectual. This observation can be realized in great extend from the banking industry where the development of e-banking reduced the needful staff or gave them the chance to execute more sophisticated services.
Furthermore, comparing the findings with the developed literature on value creative activity beginnings in e-business by Amit and Zott ( 2001 ) they confirm that the value creative activity procedure emerge from the available information flow of new clients demands, new market tendencies and between activities of VC. Furthermore, their analysis suggests that the procedure of this information flow generate four interlinked value beginnings. The first 1 is the efficiency which is harmonizing to the research is the most critical value driver in e-business, which in bend reduces dealing ‘s cost by its deductions on operating and fixed cost. From the conceptual model 3.1 and 3.3 and the analysis of findings it can be seen that all the researched companies develop e-business activities in order to leverage the higher efficiency and extract value from it. The 2nd beginning of complementary can be spotted in both industries. Form the banking industry the instance survey of ICA Banken shows that this beginning is leveraged from the combination of food market and banking and from the telecommunications the Grupalia Intenet S.A combines Voip, IPTV and ADSL services based on the handiness of complement technological development from different sectors. The available informations do non supply clear information if the directors form the researched instance survey extract value from the beginning of lock in. Although, this mark could be achieved from the double combinations Bankss by reassigning their trade name names in the marketspace and addition advantage from the developed trust, which is of import variable in order to accomplish the mark of lock in. On the other manus, the pure on-line Bankss could leverage this beginning by being a first mover, a factor which could be achieved from SkandiaBanken. The last possible beginning freshness can be realized by advanced concern theoretical accounts which in the Banking industry innovate in the manner of dealing construction and from the Telecommunication industry the invention can be spotted in footings of distribution and new methods of production of the services.
Furthermore, the research supports the observations by Sarkar et. Al ( 1998 ) , Rodey ( 1999 ) , Klein and Selz ( 2000 ) , Bhargave ( 2000 ) who argue against the thought that e-business has a consequence to vanish mediators. The findings show that new functions of on-line mediators are emerging such as supplying trust by the development of advices offering centres in the market place ( ICA Banken, SkandiaBanken, EGG ) or resellers such as in the instance of Budget Telecom. Furthermore, it can be seen that both of the industries offer the chances for the development of mediators in the marketspace because their services are available for this sort of trade.
However, the findings from the instance survey of Grupalia Internet S.A lead to disagreement with the observations of Rayport and Sviokla ( 1995 ) who argued that economic systems of graduated table and range do non applies in the field of e-business. The peculiar instance survey shows that the economic systems of graduated table are achieved using its web size and the economic systems of range are achieved by cut downing its norm cost for long term because of the handiness to supply all its services from the same web.
In term of competition, the analysis of instance surveies and models shows that both positions on the deductions of e-business on competition can be met in the pattern. Harmonizing to the position of Rayport and Sviokla ( 1994 ) , Amit and Zott ( 2001 ) and Tapscott ( 2001 ) directors have realized the critical function of new concern architecture, which extract value and competitory advantage from operational efficiency ( ICA Banken, Egg, SkandiaBanken, Budget Telecom, Upnet Taide Baltic, Grupalia Internet S.A and Egg ) , better personal services ( Egg, SkandiaBanken and ICA Banken ) , new merchandises or services ( Upnet Taide Baltic, Grupalia Internet S.A ) and new markets ( Budget Telecom, Grupalia Internet S.A ) . However, the research shows that the directors from existed traditional companies are committed to established marks and seek to leverage the efficiency and effectivity of VVC in order to function their strategic demands. This observation lead the research to see that in this type of companies the chances that stem from the marketspace are treated as complement to their strategic marks as it was argued by Porter ( 2001 ) . On the other manus, the companies that use the cyberspace as the footing of their concern program and concern theoretical account such as Egg, SkandiaBanken and ICA Banken, Upnet Taide Baltic, Grupalia Internet S.A and Budget Telecom treat the power of cyberspace as their specific advantage in order to vie successfully.
Decisions and recommendations
To sum up, the research shows that in order to develop successfully e-business activities directors should develop their activities in three phases, visibleness, mirroring capablenesss and new client relationships ( Rayport and Sviokla, 1995 ) . This stages theoretical account guides the directors in order to recognize continues new chances for added value based on the information flow from external and internal environment. Furthermore, the directors in order to leverage the possible beginnings of value in e-business should be focused on efficiency that is considered as the chief value driver, complementary, lock in and freshness ( Amit and Zott, 2001 ) . In add-on, in order to leverage at maximal these possible beginnings of import is their support from the market place through the PVC. Furthermore, the directors should recognize that the value logic is changed and their value analysis should spread out beyond the VC analysis of a individual company to web theory and entrepreneurship. Another factor that the research high spot is the importance of concern theoretical accounts in the e-business, which could considered as value beginnings because of their ability to spread out company ‘s boundaries in comparative sectors and accordingly extract value from them. Furthermore, the research shows that with the development of e-business new functions of mediators are emerging chiefly concentrated on developing trust. In term of competition the research found that the established traditional companies leverage the efficiency through the marketspace as complement to their strategic marks and disregard at their bulk other possible advantages through the marketspace. On the other manus companies, which use the cyberspace as the footing of their concern program and concern theoretical account, utilize its power as their specific advantage in order to vie successfully in both “ universes ” . These observations lead the research to see that there is demand for new tools and analytic methods, which should be focused on the new concern theoretical accounts because of their ability to spread out companies ‘ and industries ‘ boundaries, while the aroused theory on competition explores the competition within the same industry.