International Journal of Information Management 28 (2008) 68–75 Case study Early challenges of implementing an e-commerce system in a medical supply company: A case experience from a knowledge transfer partnership (KTP) Kerry Martin, Savvas Papagiannidis à , Feng Li, Michael Bourlakis, Steve Cook, Alan Hansell Management, Business School, University of Newcastle upon Tyne, Room 14, 2nd Floor, Armstrong Building, Newcastle upon Tyne NE1 7RU, UK Abstract Peacocks Medical Group Limited is a leading supplier in the orthotics market in the UK. Until recently the company relied on a well- established part electronic and part paper-based supply chain system, but the increasingly competitive nature of the market has made the company look into further electronically enabling its processes, in order to maintain its competitive advantages and also reduce operational costs and lead times. The case study presents the early experience of their transition to the new system, with particular focus on the analysis and pilot stages, and the impact it has had so far on the stakeholders and the company itself. The case highlights many of the typical problems that such projects may have at their initiation that often hinder progression and lead to failure. Suggestions of possible ways to address these issues in the context of Peacocks’ commercial environment are also considered. r 2007 Elsevier Ltd. All rights reserved. Keywords: e-Supply chain; e-Commerce; Health care; Knowledge transfer partnership 1. Introduction Peacocks Medical Group Limited has been in operation for over 100 years, operating across three separate medical business sectors: the provision of orthotic services (i.e. the designing, constructing and supplying devices to support, assist or correct limb and spinal structures), the manufac- turing of bespoke and stock orthotic products and the resale of other general medical products through the company’s catalogue mail order service. The Group’s headquarters and manufacturing operations are in New- castle upon Tyne, with a branch sales office in South- ampton. In addition, the company has a retail unit in Newcastle upon Tyne that supplies both off-the-shelf and bespoke products to patients in the North East of England. The company, which is registered as a limited liability, employs 114 full-time and six part-time members of staff. The company has adopted a rather flat hierarchy manage- ment structure, consisting of six directors and 14 team leaders contributing to 13 departments within the com- pany. The company’s annual turnover in 2005 exceeded £6m with the net profit exceeding £45,000. The company is a leading player in the design and manufacture of orthotics and has a strong reputation for the quality and fit of its products. Peacocks retains the lead production time in their market, with competitors often placing orders with Peacocks’ factory to ensure prompt deliveries. The company is always looking at ways to expand and improve the quality of its products, services and care to its customers and patients. Peacocks staff often contribute to research into orthotic productions and related new inventions and improved methods. Many of them, mainly from the orthotics team and the sales and accounting departments, read for Masters and Ph.D. degrees aiming not only to extend their own knowledge but also contribute to their respective fields. In doing so, they also help the company develop further and maintain a ‘fresh’ vision for the future. Their studies are supported by the company both financially and in terms of time needed for personal study and research, as Peacocks views these advancements as imperative not only to the organisation but to the world of orthotics. ARTICLE IN PRESS www.elsevier.com/locate/ijinfomgt 0268-4012/$ - see front matter r 2007 Elsevier Ltd. All rights reserved. doi:10.1016/j.ijinfomgt.2007.11.006 à Corresponding author. Tel.: +44 191222 5724. E-mail addresses: Savvas.Papagiannidis@ncl.ac.uk (S. Papagiannidis), michael.bourlakis@brunel.ac.uk (M. Bourlakis).