1. TODAY
Room 216; 6:15-7:45
GUEST SPEAKER
DON HAZELL
BEA Systems
Topic:
“Practitioners Perspective on
Implementing e-Business Solutions”

2. University of Colorado at Boulder
Bolsa de Valores de Guayaquil:Reaching worldwide investors through the Internet
Ramiro Montealegre
University of Colorado at Boulder

3. Europe generates more than 20% The rest accounts for less than 5%.”
“More than 75% of all EC takes place in U.S.
Europe generates more than 20%
The rest accounts for less than 5%.”
Inter-American Development Bank, July 1999

4. Ecuador’s National Context Factors (1995-1998)
Date Context Factors
Jan Armed conflict with Peru
Aug Electric power rationing program
Sep 95 Vice-President charged of misusing “discretionary funds”
Jan 96 Abdala Bucaram elected president
Economic program: taxes on gas, electricity, and gasoline
Feb General strike. Congress voted to depose Bucaram
Vice-President assumed power with army support,
but Congress appointed Dr. Fabian Alarcón
Nov 97 El Niño damage infrastructure and intimidate investors.
May 98 Estimated cost of rebuilding roads: $800 million.
Farmers lost $1 billion in output.
Jun Inflation was 35.9%.
Political system: 14 parties held seats in Congress;

5. RESEARCH SITE High Complexity Low Rate of Change
Low Accessibility to Resources
- Low Environment Stability
Ecuadorian Context
BVG Context
But the requirements
- Few people (53 people)
- Modest IT facilities
- Small budget
- Do it fast
- Innovatively
- With world-class quality

6. INTERNET STRAGY’S RESULTS
Mundo Virtual was launched October 1, 1997, as planned.
Income from paid-in-advance contracts: $72,600 in 1997.
On December 18, 1998, the Ecuadorian Congress and
the Chamber of Production, recognized BVG for
“promoting development of the national securities
market and our country in the international market in
order to foster foreign investment.”

7. Research Question HOW BVG formulated and implemented
its Internet-based strategy?
WHY it succeeded (despite the poor fit
with the environment)?

9. Phase 1. Establishing Direction
Benchmarking. Evaluating practices
at other stock exchanges
Training. Seminar at an Ecuadorian
Business School
Forming shadow org. A committee
of BVG directors assigned to define
vision and products
Learning from past experience.
Statistics from initial home page
External
Context
Organizational IT
Dynamic Capabilities Developed: Strategic Foresight

10. Phase 2. Focusing on Strategy Development
External
Context
Organizational IT
Dynamic Capabilities Developed: Strategic Flexibility
Leveraging and co-opting resources.
Ecuanet’s infrastructure
Ecuanet’s marketing and technical expertise
WebPromote’s expertise in search engines
Focusing. Clear goals and time table
Integrating into core activities. Existing
information-based products
Investing. Hardware and software
Experimenting. Web site prototype
development

11. Phase 3. Growing the Strategy
External
Context
Organizational IT
Dynamic Capabilities Developed: Trustworthiness &
Integration
Strengthening relationships. BVG’s
record of promoting Ecuador.
Relationships with client’s top management
Relationships with other web sites
Financial Investor Magazine’s database
Gaining internal commitment. Four
committees assigned to institutionalization.
Investing in specialized infrastructure. A
computer expert hired; Datawarehouse,
hardware, and software acquired

12. Implications for Practice
1. Presents a powerful example of an Internet
strategy success.
2. Underscores the need for managers to integrate
Internet strategy, processes, and organizational
capabilities and resources in pursuit of objectives
3. Provides awareness of strategies and tactics
to develop required capabilities via
firm-specific resources.