10.1 Introduction

Much has been written in this book about the external drivers for e-business and how this concept will change how organizations work and the role of their employees. We have also noted the same phenomenon in large organizations where ERP systems have been introduced impacting greatly on the internal structures and processes for labour and work division. This combination of technologies offers established companies the opportunity to build interactive relationships with partners and suppliers, improve efficiency and extend reach, all at a very low cost. For example, GE estimates to save $500 million to $700 million of its purchasing costs over three years and cut purchasing cycles by as much as 50%. The Norwegian company Statoil processes more than 350 000 invoices annually, and awards over 40 000 contracts through web-enabled ERP commerce. The company expects a considerable improvement in the ratio of invoices to orders as well as a tangible contribution to revenue. Eventually, both companies expect to buy the majority of their purchases through web-based bidding systems. Faced with such e-business innovations companies are looking for effective solutions to marry the two technologies for strategic advantage.

Inevitably this will have a major impact on their employee workforce, the processes they have to perform and their skill requirements. The workforce has had to embrace a new culture as a knowledge-based community with far more flexible work...