2- About E-Business
3- Advantages and Disadvantages
4- The impact if e-business on a typical business
5- What a company must do to transform its strategy when it decides to transform into e-business
There is a misconception that e-Business simply means buying and selling products and services over the Internet. The broader view of e-Business focuses on the key processes that directly enhance revenue namely, customer acquisition and retention through sales, marketing and service (Siebel, 2004). This customer-centric view of e-Business is not limited to the Internet but rather applies to all aspects of the customer relationship whether it is online or offline.
Week One Related Article: E-Business
To understand e-business, it is defined as the processes and tools that allow an organization to use Internet-based technologies and infrastructure, both internally and externally, to conduct day-to-day business process operations (Cylogy.com, 2005). Furthermore, e-Business is also using technology to improve your business processes. This includes managing internal processes such as human resources, financial and administration systems as well as external processes such as sales and marketing, supply of goods and services and customer relationships.
Additionally, e-Business is more than having a Website for your business. Using e-Business tools can make your administrative and operational activities more efficient through accessing the Internet to source information about your industry, suppliers and products and for general research. Also, one can streamline the traditional physical transactions into electronic transactions; human resources management, through the development of an Intranet for news, policies, staff movements and enabling staff to apply for leave and access their personnel information online, etc.
However, there are also the advantages and disadvantages to every good thing. When it comes to e-business, the advantages may include being able to use applications and features such as email, which is great because it is a quick and cheap way of sending information, combined with the ability to attach files and send them onto another user. E-business is also quicker and easier means of communications; it may strengthen marketing capabilities and reach. Finally, it may also reduce the cost of doing business by lowering transaction costs and increasing efficient methods for payment, such as using online banking and reducing stationery and postage costs.
Despite having many advantages of the Internet, there are, unfortunately disadvantages as well in e-business. For example, Viruses are often spread over the Internet, which can normally be done via email. Even having a virus scanner does not protect your computer system at one hundred percent because they do not always recognize new virus, which it does not yet know about. Other disadvantages may include...