Electronic Product Catalogues: what is missing?

This paper addresses the idea that although Electronic Product Catalogues are improving a lot , they are only a necessary but insufficient condition to turn a company into a so-called “Digital Organization”. The paper reviews both the functional character of the EPC and their recent evolution. It pays special attention to the efforts of many software companies, specialized in developing this kind of product, as they strive to make management easier for both sellers and buyers. Finally, the paper addresses the question of how the EPC fit into a basic organizational model, in which technology, people and processes constitute vital elements. Companies need to develop mediumand long-term strategies that enable them to establish their presence in electronic markets, while offering prospects for the future thanks to sustained competitive advantages. Introduction Electronic commerce is expected to be a multimillion dollar business. This belief is based on a study by McKinsey Consulting (The McKinsey Quarterly 1995), which predicts that electronic purchases from private households will create a market of $4-5 billion by the year 2003. Already today, commercial transactions are carried out electronically, although the volume has not yet reached outstanding levels in absolute terms. These transactions, leaving EDI aside, are carried out mainly on Internet. Aside from the basic telecommunications infrastructure, this potential market needs tools that will facilitate electronic transactions. Electronic Product Catalogues (EPC) are an example of such tools, and are already being improved thanks to Internet’s widespread acceptance. Today, between 50 and 60 million people are connected to Internet; in April 1997, 73% of them used the World Wide Web to make a purchase (The Economist, 1997). There is no doubt that electronic markets are emerging, but the job of consolidating them and establishing minimum requisites and standards is still pending (Schmid, 1997). The supply of EPC is diverse and still growing. In recent months, many companies have launched EPC software. However, standards have not yet been established, nor have minimal functional requirements been set. EPC development companies, as well as the firms that want to find a place in these new markets, find themselves at a learning stage. Today’s solutions are being discovered in a context of collective learning, and with time will give rise to better and better solutions. In this article, we will examine a series of positive circumstances, such as: ♦ Marked improvements in basic telecommunications infrastructure, both by public and private initiatives. ♦ Dramatic, even exponential increases, in the number of Internet users. ♦ Remarkable improvements in the performance and functioning of the Electronic Product Catalogues (EPC). * Miguel Garcia Gosalvez ([email protected]) is a Professor in the Information Systems Department at ESADE, Barcelona. His research interests include adoption and implementation of new information technologies by organizations; impact of Internet technology (especially the World Wide Web) within organizations; Electronic Commerce and its broad implications. Nevertheless, while these conditions are necessary they are also insufficient for the full development of electronic markets. Electronic Product Catalogues Today, many different options of EPC software are available for users, which try to take into account the needs of both sellers and buyers. The consumers (buyers) of this kind of software are the firms which want to sell their products (or want to cooperate with a group of firms in putting together a combined offer). For this reason, many of the softwares’ features are aimed at satisfying the needs of these consumers (i.e., the firms which want to enter the electronic marketplace). The vast majority of these kinds of software adopt a dual perspective in developing their functionality: