Enhancing the e-business value sequence through R&D

Summary form only given. Dotcoms such as CD Now, eToys and Peapod.com have not inspired much investor confidence; the Internet has not lived up to the hype. Even much respected e-business firms such as Amazon.com have struggled, unsuccessfully so far, to become profitable. So, e-business models are increasingly being required to improve firm value, especially through greater profitability, or lose the respect of investors. R&D can improve firm value by contributing to all three strategic elements of the value sequence: product or service innovation, operational effectiveness and brand equity. R&D can also contribute through the information technology infrastructure as a strategic lever operating on these three strategic elements. The critical role R&D can play is the central focus in this framework, which provides some interesting implications for management. However, the real purpose of the paper is to create discussion about the very important topic of enhancing e-business success