Evaluating Distribution Options for Horizontal Portals Using Data Envelopment Analysis

Focusing the distribution channels for horizontal portals, various aspects of e-business, in their new ways and processes, have been explained and then three types of distribution channels for a generic horizontal portal have been identified and a novel approach using data development analysis (DEA) has been suggested to address the option selection issues in this paper. INTRODUCTION E-business models are recently the most discussed aspects of the Internet. In a basic sense, a business model evolves around a basic revenue-generation model, supported by the other necessary business activities like finance, marketing models etc. [1,2]. Whatever the business models are, there is a lot of research evidence about the basic fact that the web has incorporated radical paradigm shifts in the traditional business models [3,4,5,8], and also has given rise to new kinds of business models. The web has actually complemented or reinvented tried-and-true models and has opened hitherto unseen revenue-earning models [18] for companies. The Web has popularized the auction model and broadened its applicability to a wide array of goods and services. But, even though many services related to traditional business or e-business models and processes have been e-enabled and have thus become better defined, structured, measurable [4, 8] and efficient, cost-effective logistics management is still seen as the bane of most companies' existence.[9, 10] The bulk of many organizations' budgets – both for information technology (IT) and process improvement initiatives – is spent improving the processes involved in getting materials and products through the supply chain with maximum efficiency and minimum cost, and then the distribution network is another significant bottleneck with many mid-warehouses, intermediaries etc. [5, 6, 9] The problem in maximizing the efficiency of logistics networks is that information, applications and processes have been stove-piped. [5, 9] These vertical silos of information have engendered years of disarray and inefficiency in logistics management, customer service and analysis capability. A recent survey presented by Cheung et al shows “demand-side obstacle factors in the form of perceived low e-shopping comparability, e-shopping inconvenience, e-transaction insecurity, and poor Internet privacy...translate into...supply-side hurdles.” [5] In this