Electronic business Essay
Electronic business frequently referred to as “e-business”, can be defined as the use of information and communication technologies to sustain all the actions of business. Business greatly comprises the swap of products and services between individuals. This is the vital activity of any business. Electronic business thus aims at the use of information and communication technologies in business. This is aimed at enabling the exterior actions and affairs of the business with persons, groups and other businesses (Beynon-Davies, 2004).
Internet and communication revolution has greatly worked in availing information to the consumers. This has made the consumers to be better informed increasing their demands. Consumers now have abundant choices and are aimed at seeking worth in the products they get. This has made it critical to comprehend the customer’s needs and construction a profitable relationship based on that. This marketing relationship aims at increasing profits more than the lifetime value of the customer. This thereby calls for critical strategies to be employed by the company (Paul, 2000).
Value chain: This refers to the chain followed in the making of the product. Under this strategy, organizations ought to evaluate the processes undergone for them to produce a product that has a high value
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This means greater efficiency for the firm as it ends up using minimal resources in the course of its operations. This therefore means that high profits will be recorded as the product is bound to fetch high sales in the market (Mougayar, 1998). Supply chain management: competent management of the supply chain ought to be carried out. This is done by ensuring improved organization between the firm and the sellers of the products. Improved integration of the supply chain right from the firm till the last release of the product is successfully implemented using e-business.
This is through the use of the internet which acts as a source of information to the consumers. Through e-business, everything ranging from automobiles to electronic gizmos can be bought over the Internet in a hassle free manner. This is possible where there is sound supply chain management. Through the internet the customers can make their orders directly to the firm thus reducing the supply chain and this ensures proper management of the supply chain. This also reduces the cost of production by ensuring that the products do not stay for long at the firm (Evans & Wurster, 2000).
Customer service and customer relationship management: effective e-business involves better customer service and customer relationship management ensuring the highest level of consumer satisfaction. E business is aimed at providing customer-friendly services, which comprise the appropriate release of goods at the doorstep of the consumer. This is done through the internet which allows the customers to give their views concerning the products as well as make delivery arrangements.
E-business allows interaction between the firm and the customer thus perfecting customer relations and fostering better service delivery (O’Brien, 1999). Connecting with the community: this strategy is aimed at bringing the firm closer to the community. This means that the firm can then easily investigate and peruse opportunities using information and communication technologies aimed at providing better and supple services to the customers. This strategy enables a better customer experience between customers and business organizations.
This strategy has proved effective in emergency management and disaster recovery as the firm is easily aware of any complains from the consumers and can therefore act upon it as quickly as possible (Downes & Mui, 1998). Inventory and service management integration: e business also aids in better inventory and service management integration. This is through formulating precise plans for inventory growth. E-business makes this possible as the firm is in contact with the consumers and can therefore tell changes in consumer preferences and tastes thus leading to new inventions.
This is also done through the buying of machinery and equipment which are required thus avoiding unnecessary purchases which can lead to higher expenditure (Shapiro & Varian, 1999). Executive leadership: this strategy calls for the commitment of all the senior executives involved in the e-business. Without good leadership the strategies would not be of importance and thus it is the sole responsibility of every stakeholder in the leadership to play his role to the fullest. Conclusion E-business differs from the customary sphere of business by speeding up the business activities.
This has brought about a new dimension and definition to business all over the world. This is in all forms of business, partnerships, joint ventures or large corporations. The information and communication technologies have created a forte value chain among clients, employees, suppliers, stakeholders and traders coordinated in the world of web marketing. The pillars of e-business strategies include receipt of payments over the Internet, online advertising, on-line trading and auction dealings over the Internet.
E-business strategies vary for undersized and medium-sized businesses. E-business strategies generate revenue from preservation of existing channel integrity, revenue made from paid marketing alliances, revenues derived from franchisees and subscriptions Achieve greater efficiency and return on investment. Bibliography Beynon-Davies, 2004, E-Business, Palgrave, Basingstoke. Downes, L, Mui, C, 1998, Unleashing the killer app digital strategies for market dominance, Harvard Business School Press, London.
Evans P, Wurster T, 2000, Blown to bits: How the new economics of Information transforms strategy, Harvard Business School Press, London. Mougayar, W. 1998, Opening Digital Markets, McGraw-Hill, New York. O’Brien, J. 1999, Management Information Systems: Managing Information Technology in the Internetworked Enterprise, McGraw-Hill, Boston. Paul Timmers, 2000, Electronic Commerce – strategies & models for business-to-business trading, John Wiley & Sons Ltd, London. Shapiro C, Varian H, 1999, Information rules: A strategic guide to the network economy, Harvard Business School Press, London.