Entrepreneurship & E-Business (Ch 5, Topic 4: effect of e-business on organization performance)

 

effect of e-business on

organization performance

The global nature of business today and the advances in information and communications technologies have compelled corporations to employ emerging technologies in order to remain competitive.

 In recent years, electronic business has been adopted by many corporations to improve operational efficiency, profitability, and to strengthen their competitive position.

The integration of e-business into business processes involves – the incorporation of information and communication technologies into business activities so that business transactions can be performed online with data driven by corporate databases.

For example, e-business integration with back-office operations can improve –

·         inventory management,

·         sales processing,

·         order entry, and

·         catalogue development.

In general, the development and implementation of marketing strategies for e-business necessitate substantial restructuring and rethinking of the existing processes.

Managers must communicate the importance of e-business applications to their employees and provide training for them.

Employees should understand what they are supposed to do and how they can make the venture successful for the company.

e-business models

There are several ebusiness models that can be used by an organization but the five common models include:

·     business-to-business (B2B),

·         business-to-consumer (B2C),

·         portals,

·         websites as goodwill or promotional vehicles, and

·         mobile commerce.

Companies should carefully analyze their business and evaluate the benefits and costs of each model to ensure that they utilize the best system for their business.

The selection of a suitable model can lower intermediary costs, reduce purchasing costs, improve buyer and supplier relationships, and improve market share or development.