Managing Electronic Channels: The KLM Cargo Cyberpets Case

The adoption and management of electronic channels provide critical challenges for managers and researchers in the field of information systems. With the recent advent of electronic commerce, new business models have emerged to capture the value of on-line electronic channels. In electronic channels, channel functions in particular can be combined creatively to reduce costs and improve responsiveness and can be dispersed among several different players. We argue that buying processes and channel functions in electronic channels are of a key strategic nature. This paper presents an analysis of the challenges and requirements of electronic channels and illustrates these with the KLM Cargo Cyberpets case. Cyberpets refers to Pets Travel Service, KLM Cargo's recent addition to its electronic commerce portfolio which organizes and facilitates air transportation plus ancillary services for cats and dogs. The existence of ‘Channel silos’ and channel coordination problems were found to be one of the main inhibitors for channel effectiveness and success. The paper concludes with suggestions for managers as well as for researchers.