Chung-Shing Lee 1 and Michael Pecht 2
1Pacific Lutheran University, Tacoma, Washington, USA
2CALCE, Center for Advanced Life Cycle Engineering, Department of Mechanical Engineering, University of Maryland, College Park, Maryland 20740, USA
The question for many manufacturers is whether or not e-business is a sustaining or disruptive innovation. In utilizing the model defined by Christensen and the framework developed by Lee, it was uncovered that e-business has characteristics of both. In terms of a sustaining technology, e-business can enhance existing transactions and processes to continue the existing improvement activities. However, this use of the innovation does not fundamentally change the business. To fundamentally change the business, the disruptive nature of e-business must be captured. Since e-business is both a sustaining and a disruptive innovation, organizations in designing and managing their supply chain operations should adopt a strategy that captures the characteristics of both. This paper first identifies the disruptive nature of ebusiness that could fundamentally change the way traditional manufacturers doing business. Second, a model is developed to assist strategic managers in realizing the strategic role of information systems in supply chain management. Third, sustainable e-business strategies that could be applied to improve the efficiency and effectiveness of supply chain management are discussed.