ELECTRONIC COMMERCE
Strategic Issues and Questions
CRITICAL ISSUES AND QUESTIONS
Policy and Legal Issues
1. To what extent will electronic commerce affect and change the industry and environmental
dynamics of the organization?
2. What are the technical, financial and organizational considerations related to the
consolidation and central coordination of e-commerce facilities within the organization as
opposed to decentralized models?
3. What are the strategic implications of electronic commerce and B2B consortium/cooperative
participation on the ratepayer?
4. What services, payment options and data should be made available to ratepayers?
5. What are the legal implications of data-sharing among vendors and suppliers for items such
as: individual consumption patterns, rate levels, household data, payment history, head of
household, occupation and employer, etc.?
6. What strategic choices and options does e-commerce present to the organization?
7. What are the legal and agency charter implications of participating as an equity partner in a
consortium/cooperative or B2B market?
8. What are the legal implications of receiving cash rebates based on the total purchase
volumes of other organizations.
9. What are the legal implications of receiving additional or incentive discounts based on the
total purchase volumes of other organizations.
10. If participating in a consortium or B2B buying syndicate, what level of influence or approval
will the organization have in qualifying and validating vendors for its social responsibility and
inclusiveness requirements?
11. Assuming participation in a consortium/cooperative, what are the legal implications
associated with the ownership of intellectual property, digital rights management,
programming code, transaction process design and data integrity?
12. What are the termination provisions and contractual obligations under early termination or
voluntary withdrawal from a consortium?
13. What are the legal and policy implications of participating in a consortium on the
organization’s equal access and vendor accessibility policies?
14. To what extent does participating in an e-commerce program affect the organization’s
diversity initiatives and guidelines?
15. To what extent does participating in a market partnership or consortium present or create
the appearance of a conflict of interest as a quasi-governmental agency?
16. To what extent does the organization’s participation in a B2B consortium affect its initiative of
promoting local vendor participation in its contracts?
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©2000. Synergy Consulting Group
MOR 559 E-Commerce Issues
Financial and Fiscal Policy Issues
1. To what extent can e-commerce be used to improve operational efficiencies and reduce
overhead and activity costs?
2. What are the projected cash flows associated with participating in any B2B or e-commerce
consortium?
3. What are the costs associated with acquiring technologies, software, licensing agreements
and personnel related to participating in b2b consortium/cooperatives?
4. What are the annual maintenance and other recurring costs?
5. What percentage of variable and fixed costs is shared by suppliers/vendors?
6. What operational or variable and fixed costs are the responsibility of the organization?
7. What is the financial impact of process changes associated with e-commerce and/or
participating in a consortium?
8. To what extent are cash flows accelerated through online adjudication of AP and AR?
9. What are the total transactional costs to participating vendors and are these variable based
on volumes and purchasing mixes?
10. What automated purchasing controls will be necessary to enforce purchasing policies and
adherence to budgets?
11. To what extent will overall transaction costs be reduced through e-commerce?
12. What percentage (dollars and unit volume) of total organizational purchases should be
represented by e-commerce transactions?
Organizational and Managerial Issues
1. To what extent must the operational processes of the organization change to optimize the
use of e-commerce and the benefits of the consortium?
2. What is the impact on suppliers and potential suppliers affected by any shifts?
3. To what extent is the number of qualified vendors increased/decreased by e-commerce or a
b2b consortium?
4. To what extent are administrative responsibilities for maintaining vendor data shifted to the
vendor?
5. What is the impact of Cybercash, EFT or online payment of invoices on the organization’s
current operational processes and cash flows?
6. What organizational and operational changes will be necessary to fully leverage the
capabilities?
7. To what extent will the standardization of materials and equipment be required on the part of
the organization to fully maximize its leverage on suppliers and vendors?
8. To what extent should the organization standardize its procurement requirements for
selected materials to ensure that it receives the maximum discounts possible.
9. What is the impact of e-commerce on the organization’s labor relations and what labor issues
will have to be addressed prior to entering into any e-commerce?
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©2000. Synergy Consulting Group
MOR 559 E-Commerce Issues
10. What features and functions will be provided to employees and customers?
11. To what extent will customers be held accountable for the accuracy and integrity of their
data and transactions?
12. What filters and organizational protocols will be necessary for ensuring that only appropriate
material, language and content are posted to the organization’s website and accessible to the
public?
13. What organizational unit will have overall managerial control and authority over the design,
presentation layout, colors, navigation scheme, maintenance, operations/hosting, content
quality and updating of the website?
14. What type of employee training and education will be required to support e-commerce and
related business processes?
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©2000. Synergy Consulting Group
MOR 559 E-Commerce Issues