ISBN: 0-929652-20-7
HF5548.32.F464  2000

Published by 

Meghan-Kiffer Press

Advanced Technology Books for Competitive Advantage

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Peter Fingar, author of the internationally acclaimed book, Enterprise E-Commerce, joins forces with long time colleague Ronald Aronica to go beyond e-commerce and on to the solid business fundamentals of the digital economy. The Internet is a whole new infrastructure for an entirely new way of doing business and competing. Economic transactions become frictionless as they move from places to spaces. The crisp and insightful chapters make quick reads for CEOs, COOs, CTOs, CIOs, and line-of-business executives with little time for reading--distilling what management needs to be doing and thinking today to prepare themselves and their companies for the ride ahead.

Now that doing business on the Internet is reaching the mainstream, it's no longer e-business or e-commerce--it's just business and commerce. Fingar and Aronica take the mystery out of the deep and profound changes being ushered in by the ability to connect anyone-to-anyone or any computer-to-any computer across the globe in real-time. The book signals the death of the e-hype and the beginning of the real work of building hyper-efficient, hyper-effective corporations that will continue to thrive in the years ahead.

Rather than throwing out the established fundamentals of business (the rules of the so called "old economy"), the book builds on and extends the recognized work of the thought leaders that have shaped today’s business world: Michael Porter's value chain analysis, Hammer and Champy's business process reengineering, Hamel and Prahalad's industry reinvention, Rummler and Braches's management of the white space on the organization chart, Kaplan and Norton's balanced scorecard, Peter Drucker's management wisdom, Tom Davenport's business process innovation, and Edwards Deming's quality management.

The book provides the "business ahas" GE's legendary CEO Jack Welch got after being introduced to the Internet by his wife, Jane. Welch launched his "Destroy your before some upstart in a Silicon Valley garage does!" campaign in 1999 and challenged all of GE’s line-of-business executives to "Grow your" by reinventing every aspect--buy, make and sell--of their business units. Welch "got it," realizing that the Internet is about business transformation, not a Web site.

The book systematically disassembles an enterprise's business processes, core competencies, and value chains; then reassembles them into dynamic customer-driven value webs and business ecosystems. Along the way, the authors explain the emerging business models of electronic marketplaces, peer-to-peer commerce, e-hubs, B2B exchanges, auctions, wireless applications, m-commerce, B2B consortia, collaborative commerce, digital strategies, essential technologies and e-services.

The Death of "e" is a book within a book. Part one provides a clear and insightful high-level view for busy executives, while part two presents the best of the industry thought leaders’ analyses of the key issues facing digital commerce: B2B integration, visibility across value chains, collaborative commerce, adaptive marketplaces and intelligent support.

Advance Reviews

The 'Death of e' is unquestionably the birth of a new understanding of where the real new economy is headed. The authors show amazing technological and business acumen. Insightful, pragmatic, visionary, but grounded deeply in the realities of today. A delightful find and a must read for today's companies that want to thrive in the 21st century economy.
--John Seely Brown
Chief Innovation Officer of 12 Entrepreneuring
Former Director, Xerox Palo Alto Research Center (PARC)
Co-author, The Social Life of Information, Harvard Business School Press

This book will no doubt have as great an influence on management thinking in the decade ahead as Hammer and Champy's classic, Reengineering the Corporation, did in the last decade. The authors guide us into the sustainable business models of the new century and out to the edge of the network for a whole new way of conducting business. Decision-makers need to read this book.
--James E. McClafferty
Vice President, E-Business
Allmerica Financial

See, I told you the "New Economy" was all smoke and mirrors! Of course, as this book explains, there is something very new in the real economy. The 'Death of e' is the first clear expression of how to leverage existing information assets and the Internet into real return on investment.
-- Dr. Richard Soley
Chairman and Chief Executive Officer
The Object Management Group (OMG)

The Internet itself is going through a period of great change in response to the demands of the digital economy. The 'Death of e' provides fascinating insight into what lies ahead ─when a breakthrough technology such as XML gives business leaders unprecedented market visibility, and greatly accelerates their ability to deploy and re-deploy the building blocks of business.
--Dave Hollander
Co-Inventor of XML
Co-Chair, W3C XML and Schema
Chief Technical Officer, Contivo, Inc.

Truly a remarkable synthesis of current management thinking and e-business trends. A required read for anybody involved in supply chain management as it provides a logical, compelling, and operational road map of how efficiency, responsiveness, and reliability of supply chains can be improved.
--Vinod Singhal
Professor, Georgia Institute of Technology
Co-author, "Supply Chain Glitches Torpedo Shareholder Value"

Table of Contents


Part I: What's Really New in the Real Economy

Chapter 1- The E-clipse of 2000, 19
The E-clipse of 2000
Lessons Learned, Myths Debunked
Myth 1. There is a new economy.
Myth 2. The Internet is a business fad that faded in 2000.
Myth 3. The foremost goal of a company is to deliver shareholder value.
Myth 4. Clever ideas make new wealth.
Myth 5. B2B marketplaces should be the focus of e-business efforts.
Myth 6. B2C e-commerce is dead.
Myth 7. The need for speed is central to competitive advantage in the Internet Age.
Myth 8. The Internet disintermediates.
Myth 9. Built it and they will come.
Myth 10. E-commerce is dead.
Don't Predict, Invent the Future

Chapter 2 The Rise of the Real New Economy, 33
Technology Enables, Business Changes
The Business Technology Timeline
The Rise of the Real New Economy
Stage 1. Brochureware
Stage 2. E-Commerce
Stage 3. E-Procurement
Stage 4. Electronic Marketplaces
Stage 5. The Digital Economy:
Dynamic Business Ecosystems

Chapter 3 - The New Way of Competing:Value Chain Optimization, 51
Value Chains: Arteries of the Economy
Industry Value Chains
Business Process Reengineering (BPR)
Industry Process Reengineering (IPR)
The Value Web: Structure of the 21st Century Economy
Value Chain Threads
Putting It All Together

Chapter 4 - The Art of Digital Business, 69
The Art of Digital Business
Digital Marketplaces
E-Services: The Cathedral and the Bazaar
Knowledge Management
Customer Relationship Management: The Soul of Digital Commerce
Content, Commerce, Collaboration, and Context

Chapter 5 - The Commerce Resource Platform, 89
21st Century Business Software: A Change in Kind
From ERP to CRP: Agile Software Powering the Agile Corporation
Building the Commerce Resource Platform

Chapter 6 - The New Way of Competing Demands New Technology, 101
The Importance of Component-based Architectures
Peer-to-Peer: Commerce on the Edge of the Internet
Model Driven Architecture
The XML Factor and the Tower of Babel Challenge
XML Powers Web-Services
Managing the Complexity with Software Agents

Chapter 7 - Digital Strategy, 129
Business Strategy: People, Process and Technology
The Planning and Implementation Process
Customer Value Analysis
Business Strategy Formulation
Value Chain Engineering
Feedback and Measurement
Putting It All together

Part II: Thoughts from the Thought Leaders

Chapter 8 - Peer-to-Peer Commerce, 147
With Bob Anderson

The Connection Age
Complex Adaptive Systems
Outdated Notions of Corporate Boundaries
Peer Computing Comes to the Internet
Peer Computing in the Enterprise: Tools, Platform, and Infrastructure
A Peer-to-Peer Platform for Business Solutions
Benefits of Peer-to-Peer Communications
Is There a Future for Peer Computing?
An Example: Peer Computing at the Edges of Net Markets
The Human Communications Aspect of Net Markets
The Future
Peer-to-Peer Collaborative Commerce

Chapter 9 - Collaborative Commerce, 167
With Manoj Saxena, S.P. Rana and Tim Harmon

Beyond the Transactional Exchange: 
The Coming Era of Collaborative Commerce
The Limitations of Transactional Exchanges
Strategies for Supplier Survival
The Promise of Collaborative Commerce
The Essentials of Collaborative Commerce
Unleashing the Power of Collaboration for 
Streamlining Value Chains
Collaboration Flavors:
--Information Collaboration
--Process Collaboration
Supply Chains vs. Value Chains
Process Collaboration and Intelligent Agents

Chapter 10 - Portals: Business on the Network Edge, 185
With Barry Morris

No More Web Sites
No More Application Servers
No More Applications
No More Operating Systems
No More Status Quo

Chapter 11 - Adaptive Strategies for B2B Marketplaces, 197
With Biri Singh

A Value Chain Approach
Value Chain-- Pain Points and Opportunities
Building B2B Marketplace Strategy
Technology Considerations Behind B2B Marketplaces
A New Model-based Approach to e-Business Platforms
How to Implement The New-Model in a B2B Marketplace

Chapter 12 - B2B Integration: The Message is the Medium, 219
With Scott Blackburn

The Promise and Challenge of Business Integration
XML and Standards: Necessary but Not Sufficient
A Comprehensive Integration Infrastructure
Getting There

Chapter 13 - Bringing Visibility to the Extended Supply Chain, 231
Justin Steinman And Chris Stone

Providing Critical Information to the Networked Economy
Businesses Need On-Demand Insight into the 
Extended Supply Chain
Adoption of Virtual Business Models
Investments in Information-Enriching Applications
Internet Emerging as Core Infrastructure for Supply Chains
In-the-Net Analytics Bring Visibility
Seeing Problems Before Your Customers Do
Bridging Information Gaps
Improving Businesses Processes
Industry Examples:
--Industrial Manufacturer
--High-Technology Manufacturer
--Building Contractor
--Transaction Network Example
Putting It All Together

Appendix A - Prelude to the Digital Economy:

The Dot-Com Crash of 2000, 251
Irrational Exuberance
The Dot-Con Game

Appendix B - Pillars of Digital Commerce, 263

The Advent of "e"
The Pillars of Digital Business
What Electronic Commerce Really Is
The Importance of the Business Model

Appendix C - Business Fundamentals of the
21st Century Economy,

1. The Customer Becomes a Dictator
2. Mass Customization Supercedes Mass Production
3. Business Becomes Ubiquitous
4. Relationship Management Becomes Holistic
5. Customers and Trading Partners Become Virtual Employees
6: Digital Corporations Achieve Hyper-efficiency
7. Only the Transactions of the Economy Move to the Net
8. Competition Becomes Value Chain Versus Value Chain
9. Digital Markets, the New Middlemen, Reduce Friction
10. Operational Requirements Become 7x24
11. Cycle-Times are Slashed
12. Branding Still Counts
13. Pricing Becomes Dynamic
14. Inter-Organization Design is a Really Big Challenge
15. A New Kind of Software Powers the Digital Corporation

Appendix D - Understanding ebXML, UDDI and XML/edi, 297
With Anthony Dutton and David RR Webber


Appendix E - Web Resources, 311

Bibliography, 313

Index, 339

About the Authors and Contributors, 353

Peter Fingar is one of the industry's noted experts in component-based electronic commerce and an internationally recognized author. His recent book, "Enterprise E-Commerce" is a best-seller recognized for its thought-leadership and has been adopted by top graduate schools in the U.S. and abroad. Peter is an Executive Partner in the digital strategy firm, the Greystone Group. Peter served as Technology Advocate for a Boston-based developer of component-based B2B e-commerce for clients including GE TPN, American Express, Master Card and GE Capital. He served as a strategy consultant for a $100 million Internet infrastructure start-up in the Middle East. He has held technical and management positions with GTE Data Services, the Arabian American Oil Company, American Software and Computer Services and Perot Systems. He served as Director of IT for the University of Tampa and object technology consultant for IBM Global Services. He taught graduate computing studies in the United States and Saudi Arabia. He can be reached at

Ronald Aronica, President of Greystone Group, has provided Fortune 500 companies with advice as to how best to use advanced technologies to improve their businesses and profitability. He was a manager with KPMG's IS Strategic Planning and Consulting group and vice-president and president of other IS consulting organizations. In addition to his work with e-commerce, he teaches technologies and the impact of these technologies to IS-professionals and their senior managers. Working with the State of Florida, he designed their first Web-based system for providing work and employment opportunities for the State's citizens. He can be reached at

Bryan Maizlish is the Director of Marketing-Business Development for Lockheed Martin Global Telecommunications, and is responsible for identifying market trends, partnerships, acquisition and new business opportunities. Maizlish served as EVP, Chief Strategy Officer, and CFO for Noor Group Ltd. who is building an Arabic portal, data center, and access network infrastructure in Egypt. He served a similar role for Magnet Interactive, whose clients included: Nissan, Infiniti, Mayo Clinic, Federal Express, FirstUSA, Kellogg's, Discovery Communications, Crayola, and DuPont.. Maizlish earned his MBA at Wharton.

Bob Anderson is the Business Evangelist for Groove Networks, MA-based company developing peer-to-peer and peer-to-Web software solutions that provide businesses secure, online working relationships with key suppliers, partners and customers. His primary focus has been on articulating the Groove peer-to-peer value proposition in the business context, particularly with regard to trading partner collaboration: Collaborative Planning, Forecasting and Replenishment, Supply-Demand Chain, New Product Design and Net-Markets.

Scott Blackburn is President and CEO CommerceQuest, the company he co-founded in 1992. He fostered the company's rapid growth to become a leading provider of complex business integration software and services. Under his direction, the company has delivered technology solutions to Anheuser Busch, American Express, Ericsson, EDS, ICG Commerce, Tech-Data, AAA, Publix Supermarkets, Wal-Mart, Ahold, GTE and State Farm. Blackburn holds the BS/CS degree from the University of Kansas.

Anthony Dutton is Director of Corporate Communications for XML Global Technologies. As well as having a Bachelor's Degree in Architecture, Anthony also holds a joint MBA from The Cranfield School of Management in the U.K and the Ecole Supérieure de Commerce in Lyons, France.

Tim Harmon is the vice president of marketing and product strategy at Exterprise. Prior to joining Exterprise, Harmon served as vice president of Retail & Distribution Strategies at META Group, a leading IT research and advisory services firm. Harmon earned a B.S. degree in computer science, business administration and math at Iowa State University.

Barry Morris is CEO for IONA Technologies. Before being named CEO, he was COO with responsibility for day-to-day operations. He created IONA's iPortal strategy and oversaw the expansion of the company's US offices. Previously, Morris was a consultant at Digital Equipment Corporation. Morris earned his BA from New College, Oxford University.

Dr. SP Rana is co-founder, vice-chairman and CTO of Exterprise. Prior to Exterprise, Rana led IBM Global Services' technology strategy development, global program implementations and vendor alliances for their strategic outsourcing business. He has 20+ years of IT experience and a unique combination of enterprise architecture experience that encompasses business process collaboration, distributed computing and customer service issues. Dr. Rana has a Ph.D. in computer sciences from Indian Institute of Technology (IIT), New Delhi, a master's degree in operations research and a bachelor of science in mathematics.

Manoj Saxena is co-founder, president and CEO of Exterprise. Prior to founding Exterprise, Saxena served as business unit manager at 3M, where he had $100 million of P&L responsibility for the Telecom Systems Division. Saxena brings more than 15 years of experience in business development, product marketing, and strategic planning in the telecommunications, medical and manufacturing industries. Saxena has an MBA from Michigan State University and received an MMS degree from Birla Institute of Technology and Science, Pilani, India.

Biri Singh, President and CEO, co-founded Idapta in February 1999 with the idea of building an enterprise software company to attack the significant opportunity within B2B e-commerce. Previously, Biri was COO of RelevantKnowledge Inc. and served as a consultant for Ernst & Young's communications, media and Internet commerce practice. Biri holds an MBA from the Kenan-Flagler School of Business, University of North Carolina.

Justin Steinman serves as Solutions Marketing Manager for Tilion. Prior to Tilion, Steinman was a consultant with Accenture's Enterprise Business Solutions group where he led a team of consultants responsible for developing strategic and systems solutions through ERP installations for large, multi-national clients. Steinman is a Phi Beta Kappa graduate of Dartmouth College.

Christopher Stone is the CEO, President, and Founder of Tilion, founded to address the unmet business requirement for an on-demand, unified view of the supply chain. Stone is a noted technology visionary, with more than twenty years of experience leading high technology industry innovation. He was executive VP of corporate strategy and development at Novell, playing a key role in its turnaround and resurgence. Previously, he founded the Object Management Group (OMG), the largest software development standardization group of its kind. 

David R. R. Webber is VP of Business Development with XML Global Technologies. David has over twenty years experience designing and implementing business systems for a broad spectrum of industries; and is a US patent-holder for advanced EDI software technologies. David is a co-founder of the XML-EDI Group and an acknowledged international authority on XML, EDI, metadata-registries and Web-based software engineering. He is currently involved in an advisory role with a wide variety of industry initiatives including ebXML. 

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Digital Marketplaces

 Value Chain Optimization

 B2B Exchange

 Caveat Venditor


Universal Description, Discovery & Integration (UDDI)

Frictionless Economy

Peer-to-Peer Commerce

Business Ecosystems

Sustainable Business Models

Commerce at the Network's Edge

Collaborative Commerce

Based Development



From Places to Spaces


Web Services Definition Language (WSDL)

Connection Age

Value Chain Engineering

Integration Infrastructure

Business Webs

Enterprise Portals

Web Services Definition Language

Model Driven Architecture

Wireless Application Protocol (WAP)

Adaptive Marketplaces


  Analytics in the Net

Knowledge Base Engine

Intelligent Support

Process Engineering

 E-Commerce Integration

  Predictive Customer Relationship Management

Enterprise Application Integration (EAI)

 Intelligent Agents



Message Oriented Middleware (MOM)

 XML Vocabularies

 Open Markets

Value Chain Relationship Management

 Customer-Driven Value Chain

 Value Chain Threads





Business Architecture

E-Commerce Myths


Value Webs




Demand Chain

Supply Chain

Collaborative Planning, Forecasting and Replenishment  (CPFR)


Digital Strategy

Market Positioning

No More Web Sites!

No More Application Servers!

No More Operating Systems!


Commerce Resource Platform (CRP)

Mass Customization

Unified Modeling Language (UML)

Common Warehouse Metamodel

Butterfly Market

See-Buy-Get Transactions

SWOT Analysis

Holistic Customer Relationship Management


Knowledge Management

Business Intelligence

Neural Nets

Relationship Grids

Content, Community, Commerce and Context

Commerce Lifecycle Management

Payment Gateways


Multi-Agent Systems

Evolutionary Computing

Fuzzy Systems

Genetic Algorithms

Business Process Modeling Language

Baysian Algorithm


Balanced Scorecard

Business Semantics


Business Transformation

Hassle FActor


Click Streams

Brick and Mortar

Click and Mortar

Commerce Process Reengineering (CPR)

Community Builder

Critical Success Factors (CSF)



Component Frameworks

Software Factory

Customer Value


Dynamic Workflows


Productivity Paradox

Shared Vision

Simple Object Access Protocol (SOAP)

Role-Based Task Allocation

Virtual Spaces

Value Chains of Information

White Space

Server Centric vs. Serverless

Reverse Value Chain Engineering

Service-Based Architectures

Service-Oriented Programming

Semantic Webs

Reason Under Uncertainty

Pricing Policy

Vickrey Auction


Network Edge

Open Information Model (OMI)

Natural Language Processing

Metcalf's Law


First Price Auction


Document Messaging

Contextualized Spaces

Connectionless Communications

Demand Aggregation


Buyer's Market




Asynchronous Communication

Business Objects

Active Content

Center-Based Systems

Digital Economy

Compelling Value

Discontinuous Change

Viral Marketing

Horizontal Marketplaces



Supply Chain Analytics


Touch Points

Spot Buying

Network Horizon


English Auction

Encounter Models

Enterprise Application Integration (EAI)

Core Competencies

Vendor Managed Inventory (VMI)


Customers as Employees!

Business Service Provider (BSP)

Automated Credit Exchange

Activity-Based Analysis

Business Transaction Protocol

Consortium Business Models

Direct Procurement

Event Handling Services



Islands of Information

Joint Product Design

Managed Network Services

Virtual Corporations

Systems Thinking

Tacit Information

Service-Based Internet

Private Marketplaces

Parametric Search

Open Market Processes

Network Business Model

Parallel Purchasing Activities

Porter Value Chain Analysis

Non-Deterministic System

Mission-Critical Infrastructure

Information Filtering


Document-Centered Technology