Publications
Publications
- August 1998
- HBS Case Collection
Electronic Commerce at Air Products
By: F. Warren McFarlan and Melissa Dailey
Abstract
In 1998,chief information officers (CIOs) in the highly competitive international gases and chemicals business faced the reality that electronic commerce capability was a strategic necessity. The results of annual surveys of technology officers in the chemical industry indicated a shift in priorities from the building of a corporation's internal infrastructure in 1995 to enabling the same infrastructure to connect with customers, suppliers, and partners in 1998. The CIOs cited computer-supported collaborative work, electronic commerce, and Internet systems as critical technologies in 1998, according to surveys conducted by Computer Sciences Corp. Most companies have completed in-house reengineering tasks and are ready to put new systems to work managing whole supply chains. The increasing strategic importance of electronic commerce commanded the attention of the senior executives of Air Products and Chemicals, Inc., an international corporation with headquarters in Trexlertown, PA. With sales of $4.6 billion in 1997, Air Products held the number two position in the gases industry in the United States, behind Praxair, and was the fourth largest provider in the worldwide market. Air Products Management Information Systems (MIS) Vice President Joe McMakin and his colleagues recognized the opportunity: they could improve service to customers by automating the buying, selling, and distribution of products, while simultaneously improving productivity and realizing cost savings. A rewritten version of an earlier case.
Keywords
Management Teams; Information Technology; Globalized Markets and Industries; Infrastructure; Internet and the Web; Technology Adoption; Business Strategy; Chemical Industry; United States
Citation
McFarlan, F. Warren, and Melissa Dailey. "Electronic Commerce at Air Products." Harvard Business School Case 399-035, August 1998.