ECommerce Management Skills – Perceptions of Managers and Technologists Trevor Nesbit nesbitT@cpit.ac.nz School of Computing and School of Business Christchurch Polytechnic Institute of Technology PO Box 540, Christchurch Phone (03)940-8307 Fax (03)940-8648 Abstract The purpose of this paper is to explore the different perceptions that people in management and technical roles have in relation to the question “what are the most important management skills needed in eCommerce organisations?” The research is based largely on the work of Davis & Hajnal (1998) who identified a range of management skills that are important for eCommerce organisations, and on the work of Nesbit (2002) who identified a range of management skills and competencies that were determined to be the most important for a sample of New Zealand eCommerce/eBusiness organisations. The focus of this paper is to examine the findings of Nesbit (2002) based on the roles that the respondents have in their organisations. The results suggest that those in solely management roles and those in technical roles all perceive that skills relating to strategic change are of vital importance when it comes to what are the most important management skills for eCommerce organisations. There is also an indication that those in management roles and those in technical roles may have a different understanding of what the nature of strategic issues are. Keywords eCommerce eBusiness Management Skills Strategic Change 1. INTRODUCTION Davis and Hajnal (1998) identified a list of 22 management skills and competencies that are seen as being important to the success of eCommerce organisations. Nesbit (2001a, 2001b, 2002) built on this work in a New Zealand context. This work included interviews with managers in three eCommerce organisations in New Zealand. Nesbit (2002) conducted a survey of a wider range of eCommerce organisations with the aim of exploring what are the most important management skills for an eCommerce organisation. This work involved extending the list of 22 skills and competencies identified by Davis and Hajnal (1998) to 31, with these skills and competencies being shown in Appendix 1. The respondents were asked to rate each of these skills from “vitally important” through to “not important at all” on a likert scale. Three different ranking methods were used to rank the 31 skills and competencies. Table 1 shows the 5 skills that had the highest percentage of respondents that rated the skill/competency as a “1”. Table 2 shows the 5 skills that had the highest percentage of respondents rated the skill/competency as a “1” or a “2”. Table 3 shows the 7 skills that had the highest number of respondents rated the skill/competency as the most important. Table 1 - Skills/Competencies By Percentage of Respondents Rating "1" Skill Percentage Openness to change 77.8% Maintains clarity of vision within uncertainty 61.5% Thinks creatively and is innovative 55.6% Learns quickly 51.9% Can operationalise and implement strategic vision 51.9% Table 2 - Skills/Competencies By Percentage of Respondents Rating "1" or "2" Skill Percentage Openness to change 100.0% Thinks creatively and is innovative 100.0% Learns quickly 96.3% Builds relationships 96.2% Maintains clarity of vision within uncertainty 96.2% Table 3 - The Most Important Skill/Competency - Frequency of Reponses Skill Frequency Maintains clarity of vision within uncertainty 5 Can operationalise and implement strategic vision 4 Builds relationships 3 Has an understanding of the business on a business level 3 Learns quickly 2 Openness to change 2 Thinks creatively and is innovative 2 The following skills were rated in at least fifth equal place using all three of the above ranking methods, with this suggesting that amongst the respondents covered by the survey, they are the most important management skills: Maintains clarity of vision within uncertainty Learns quickly Openness to change Thinks creatively and is innovative 2. METHOD 2.1 Role of the Respondent The survey conducted by Nesbit (2002) asked the respondents to indicate whether they were in a management role, a technical role, a mixed management/technical role or in another role. The responses to this question enabled the views and responses of those who are in solely management roles to be separated from those with a technical role or a mixed management/technical role. Those who were in a solely management roles were classified as Group M, with those in a role that was at least in part technical being classified as Group T. 2.2 Ranking of Skills The skills that were rated “1” by 30% or more of the respondents were extracted from the complete list. The responses were then separated into those made by respondents in Group M and those made by respondents in Group T. The percentage of each group rating the skills as “1” was then calculated. Where, for a particular skill, there was a difference of more than 10% between Group M and Group T, the skill was extracted. These skills were then separated into two groups – one where a higher percentage of respondents in Group M rated the skill “1” than the respondents in Group T, with the other being where a higher percentage of respondents in Group T rated the skill “1” than the respondents in Group M. This gave one measure of skills that were perceived as being of different levels of importance by people in solely management roles as opposed to technical roles. The skills that were rated “1” or “2” by 70% or more of the respondents were extracted from the complete list. The responses were then separated into those made by respondents in Group M and those made by respondents in Group T. The percentage of each group rating the skills as “1” or “2” was then calculated. Where, for a particular skill, there was a difference of more than 10% between Group M and Group T, the skill was extracted. These skills were then separated into two groups – one where a higher percentage of respondents in Group M rated the skill “1” or “2” than the respondents in Group T, with the other being where a higher percentage of respondents in Group T rated the skill “1” or “2” than the respondents in Group M. This gave a second measure of skills that were perceived as being of different levels of importance by people in solely management roles as opposed to technical roles. The skills that were selected as being the most important skills by some respondents in Group M, but by no respondents in Group T were placed in one group. The skills that were selected as being the most important skills by some respondents in Group T, but by no respondents in Group M were placed in another group. This gave a third measure of skills that were perceived as being of different levels of importance by people in solely management roles as opposed to technical roles. 3. RESULTS 3.1 Role of the Respondent The respondents were asked to indicate the nature of their role with the results being shown in Table 4. The "Other" roles that were identified were consultant, tutor with a bit of technical, and sales/marketing. It was decided to include these three respondents in the analysis that follows, and to treat the respondents in the consultant role and sales/marketing roles as being in management roles, and to treat the tutor with a bit of technical as being in a technical role. Table 4 - Classification Of Respondents By Role Number Management role 18 Technical role 1 A mixed management/technical role 9 Other (please specify) 3 Total 31 Percent 58.1% 3.2% 29.0% 9.7% 100.0% The respondents were then placed in two groups. The 20 respondents who were in management roles were placed in Group M. The 11 respondents who were in mixed management/technical roles were placed in Group T. Respondents had also been asked to indicate the nature of their organisation as it relates to eCommerce/eBusiness and where their organisation is based. This resulted in four of these organisations being excluded from further analysis as they were not involved in eComerce/eBusiness or were not based in New Zealand. This resulted in there being 17 respondents in Group M and 10 respondents in Group T. 3.2 Ranking of Skills Table 5 shows skills that were rated “1” by 30% or more of the respondents, where the percentage of respondents in Group M who rated the skills as “1” was at least 10% higher than the percentage of respondents in Group T who rated the skills as “1”. For each of these skills the following is shown: The percentage of all respondents who rated the skill as “1” The percentage of respondents in Group M who rated the skill as “1” The percentage of respondents in Group T who rated the skill as “1” The difference between the percentage of respondents in Group M who rated the skill as “1” and the percentage of respondents in Group T who rated the skill as “1” Table 5 – Skills Rated “1” By Higher Proportions Of Group M than Group T Skill/Competency % of all % of % of respondents Group M Group T rating “1” rating “1” rating “1” Difference Possesses an attitude that is appropriate for "business and people" management 37.0% 47.1% 20.0% 27.1% Has the ability to manage cultural change 33.3% 41.2% 20.0% 21.2% Possesses knowledge of the industry that the organisation is in 40.7% 47.1% 30.0% 17.1% Maintains clarity of vision within uncertainty 59.3% 64.7% 50.0% 14.7% Openness to change 77.8% 82.4% 70.0% 12.4% Table 6 shows the same information as Table 5, except that the skills shown are those where the percentage of respondents in Group T who rated the skills as “1” was at least 10% higher than the percentage of respondents in Group M who rated the skill as “1”. Table 6 – Skills Rated “1” By Higher Proportions Of Group T than Group M Skill/Competency % of all % of Group % of Group respondents M T rating “1” rating “1” rating “1” Difference Can operationalise and implement strategic vision 51.9% 47.1% 60.0% -12.9% Table 7 shows skills that were rated “1” or “2” by 70% or more of the respondents, where the percentage of respondents in Group M who rated the skills as “1” or “2” was at least 10% higher than the percentage of respondents in Group T who rated the skills as “1” or “2”. For each of these skills the following is shown: The percentage of all respondents who rated the skill as a “1” or a “2” The percentage of respondents in Group M and Group T respectively who rated the skill as a “1” or a “2” The difference between the percentages in Group M and Group T. Table 7 – Skills Rated “1” or “2” By Higher Proportions Of Group M than Group T Skill/Competency % of all % of % of respondents Group M Group T Difference Possesses knowledge of the industry that the organisation is in 85.2% 94.1% 70.0% 24.1% Has an understanding of the business on a business level 81.5% 88.2% 70.0% 18.2% Possesses good marketing skills 70.4% 76.5% 60.0% 16.5% Learns quickly 96.3% 100.0% 90.0% 10.0% Table 8 shows the same information as Table 7, except that the skills shown are those where the percentage of respondents in Group T who rated the skills as a “1” or a “2” was at least 10% higher than the percentage of respondents in Group M who rated the skill as a “1” or a “2”. Table 8 – Skills Rated “1” or “2” By Higher Proportions Of Group T than Group M Skill/Competency % of all % of % of respondents Group M Group T Difference Has the ability to work with IT professionals, data processors 70.4% 58.8% 90.0% -31.2% Has collaboration skills 85.2% 76.5% 100.0% -23.5% Can interact in an IT/business work group 77.8% 70.6% 90.0% -19.4% Has the ability to contribute to standards of service to constituents 77.8% 70.6% 90.0% -19.4% Possesses the ability to use telecommunications & information technologies 77.8% 70.6% 90.0% -19.4% Can operationalise and implement strategic vision 81.5% 76.5% 90.0% -13.5% Builds relationships 92.6% 88.2% 100.0% -11.8% Possesses analytical ability at the strategic level 92.6% 88.2% 100.0% -11.8% Table 9 shows the skills that were selected as being the most important skills by at least one respondent in Group M, and by no respondents in Group T. Table 9 - Skills Rated The Most Important By Group M And Not Rated Most Important By Group T Skill Respondents in Group M Rating as Most Important Can operationalise and implement strategic vision 4 Openness to change 2 Has the ability to manage cultural change 1 Understands the principles of human-computer interaction 1 Table 10 shows the skills that were selected as being the most important skills by at least one respondent in Group T, and by no respondents in Group M. Table 10 - Skills Rated The Most Important By Group T And Not Rated Most Important By Group M Skill Respondents in Group T Rating as Most Important Possesses the ability and/or willingness to support informed risk taking 1 Possesses analytical ability at the strategic level 1 Possesses knowledge of the industry that the organisation is in 1 Has charisma (a leader, enthusiasm generator, problem solver for others) 1 4 ANALYSIS AND DISCUSSION 4.1 Role of the Respondent After looking at the role of the respondents and the nature and location of the organisation, 4 of the 31 respondents were excluded from further analysis. This was to ensure that only respondents in management or technical roles, who were involved in organisation utilising or adopting eCommerce that were based in New Zealand were included in the analysis 4.2 Ranking of Skills Three different methods were used to identify which skills are perceived as being more important by respondents in Group M than respondents in Group T. Table 11 shows the skills and which methods classified them as more important by those in solely management roles than those in technical roles. Table 11 – Skills Classified More Important By Respondents in Group M than Respondents in Group T Skill Rated Rated Most “1” “1” or “2” Important Maintains clarity of vision within uncertainty Learns quickly Possesses good marketing skills Possesses knowledge of the industry that the organisation is in Understands the principles of human-computer interaction Has the ability to manage cultural change Openness to change Possesses an attitude that is appropriate for "business and people" management Has an understanding of the business on a business level Can operationalise and implement strategic vision There were only three skills that were classified as more important for Group M respondents than Group T respondents using two of the three methods used. These were: Possesses knowledge of the industry that the organisation is in Has the ability to manage cultural change Openness to change Three different methods were used to identify which skills are perceived as being more important by respondents in Group T than respondents in Group M. Table 12 shows the skills and which methods classified them as more important by those in technical roles than those in solely management roles. Table 12 – Skills Classified More Important By Respondents in Group T than Respondents in Group M Skill Rated Rated Most “1” “1” or “2” Important Builds relationships Possesses the ability and/or willingness to support informed risk taking Possesses analytical ability at the strategic level Has collaboration skills Possesses knowledge of the industry that the organisation is in Can interact in an IT/business work group Has the ability to work with IT professionals, data processors Has the ability to contribute to standards of service to constituents Possesses the ability to use tele-communications & information technologies Has charisma (a leader, enthusiasm generator, problem solver for others) Can operationalise and implement strategic vision There were two skills that were classified as more important for Group T respondents than for Group M respondents using two of the three methods. These were: Possesses analytical ability at the strategic level Can operationalise and implement strategic vision The unusual feature of this is that the skill of “Can operationalise and implement strategic vision” was chosen by more respondents in Group M as being the most important skill of all as shown in Table 9. 5. CONCLUSIONS When considering the management issues that arise in eCommerce organisations, and the perceived important management skills, it appears that the respondents in solely management roles see issues relating to change, in particular strategic change, and the ability to be open to change and to manage cultural change as of more significance than the respondents in technical roles. The skills that are seen by the respondents in technical roles as being of more importance than those in solely management roles were those of having analytical ability at the strategic level and being able to operationalise and implement strategic vision. Thompson and Strickland (2000) in describing the role of strategic management quite clearly point to strategic issues being intertwined with culture and change, which suggests that the differences in perception between the two groups may not be great. The difference could be due to the respondents in each group having a different understanding of what strategic issues are. This could also explain how those in technical roles see “can operationalise and implement strategic vision” as being more important than those in solely management roles, yet at the same time more respondents in management roles saw this skill as being the most important of all skills than any other skill. This is based on the responses of a relatively small sample of eCommerce organisations in New Zealand, and as such it is not possible to make generalisations about the entire population of eCommerce organisations. It does however point to the possibility that those in management roles might have a different understanding of the nature of strategic issues than those in technical roles, with this being a possible starting point for a future study. REFERENCES Davis, C. and Hajnal C. (1998) Management Skill Requirements for Electronic Commerce: A "Business-Centric" Approach. Proceedings of ISMOT 98, Zhejiang University, China, Nov. 1998 Nesbit, T.R. (2001a) eManagement Skills For Success - A Study Of Three eCommerce Organisations in New Zealand. Proceedings of the Twelth World Productivity Congress, November 2001, Hong Kong Nesbit, T.R. (2001b) What Do Pigs and Chickens Have To Do With E-Commerce. Proceedings of the 14th Annual Conference of National Advisory Committee on Computing Qualifications, July 2001, Napier, New Zealand. Nesbit, T.R. (2002) Management for Success in eCommerce. Proceedings of the 15th Annual Conference of National Advisory Committee on Computing Qualifications, July 2002, Hamilton, New Zealand. Thompson, A. and Strickland, A. (2000) Strategic Management – Concepts and Cases (10th edition) Boston: Irwin McGraw-Hill APPENDIX 1 The 31 Management Skills and Competencies Included in the Survey by Nesbit (2002) 1 Possesses general management education 2 Builds relationships 3 Maintains clarity of vision within uncertainty Possesses basic understanding of computers from a non-technical 4 perspective 5 Learns quickly 6 Possesses the ability and/or willingness to support informed risk taking 7 Possesses analytical ability at the strategic level 8 Has collaboration skills 9 Has traditional reporting skills 10 Possesses good marketing skills 11 Possesses knowledge of the industry that the organisation is in 12 Can interact in an IT/business work group 13 Understands the principles of human-computer interaction 14 Has a broad perspective on electronic commerce 15 Possesses operational skills (such as product development) 16 Has the ability to work with IT professionals, data processors 17 Has the ability to manage cultural change 18 Possesses the ability to manage multiple projects 19 Possesses negotiation skills 20 Has the ability to market in a one-to-one environment 21 Openness to change 22 Has the ability to contribute to standards of service to constituents Possesses the ability to use telecommunications & information 23 technologies 24 Has charisma (a leader, enthusiasm generator, problem solver for others) Possesses an attitude that is appropriate for "business and people" 25 management 26 Has an understanding of the business on a business level 27 Thinks creatively and is innovative Has a non-technical person's understanding of technological security & 28 perceptions surrounding security 29 Is comfortable with emergent properties – not being a “control freak” 30 Is comfortable interacting with government and regulatory bodies 31 Can operationalise and implement strategic vision