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Baan Company’s Corporate Web Strategy – An Effort To Reach Main Street

Author

Listed:
  • Post, H.A.
  • Commandeur, H.R.
Abstract
During the 1990s Baan Company became a market leader in the enterprise applications industry. Its mission was to become an independent software manufacturer, serving a global market. To speed up growth, Baan developed its Baan Web strategy which implied a far-reaching renewal of its corporate strategy. Burgelman and Grove (1996) define the moment of choosing a new strategy as a strategic inflection point. Their framework named “Dynamic Forces in Firm Evolution” explains that ssuccessful development and implementation of a new corporate strategy is a process of aligning five dynamic forces. The focus of this study is on the vital role of the internal selection environment. This force regulates the allocation of the company’s scarce resources – cash, competences/capabilities and senior management attention – to strategic action. It is the crucial force in the continuing alignment processes that have to take place. Every company has a unique combination of distinctive competences (Burgelman) or dynamic capabilities (Teece). The study explains that to execute a new strategy successfully new competences/capabilities have to be developed based on existent ones. The development of Baan’s corporate strategy is analyzed and discussed with reference to the Technology Adoption Life Cycle (Moore). The study concludes with the management implications of a strategic inflection point.

Suggested Citation

  • Post, H.A. & Commandeur, H.R., 2004. "Baan Company’s Corporate Web Strategy – An Effort To Reach Main Street," ERIM Report Series Research in Management ERS-2004-019-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:1179
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    More about this item

    Keywords

    ERP; business web; corporate strategy; distinctive competences; dynamic capabilities; globalization; growth; software; strategic inflection point;
    All these keywords.

    JEL classification:

    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics

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