Leveraging Businesses Using Effective Ebusiness Systems

Published Date: 02 Nov 2017

1. Abstract

Business processes are one of the most important assets that a company need. The success of the business depends directly on the quality of these processes. This makes business process reengineering and business process improvement the key task of a business analyst. To support monitoring and analysis of the knowledge of cutting edge technologies and how they are used for Web based e-business applications are "must have" skills not only for e-business systems developers but for all other e-business professionals. Organizations aim to "seamlessly" integrate WWW and the Internet into their business operations. [ word to word copy from http://gsim.iuj.ac.jp/content/en/taxonomy/term/3 but not quoted and no reference given ] We need skills to match technologies by understanding critical components of e-business operations. Hence of strategies are to maintained and implemented in the effective and optimised in the e-Business system to leverage the Business i.e. in terms of technology. As of if we the entry of 21st century, SMEs (small and medium-sized enterprises) have become the most active elements of economies. Meanwhile, emerging from the new economical era, e-business has become an essential tool for raising competitiveness of various enterprises. It provides an excellent platform for SMEs to compete with large conglomerates. Deployment of e-commerce for SMEs is an inevitable trend. However, to fully utilize the current available resource, which is still very limited today, and to choose an appropriate application mode and an effective implementation strategy, have become the key for the success of e-business deployment. This thesis is based on the working experience, addresses key issues such as choice of application mode and implementation, during the deployment of e-business with high end technology solution.

Keywords: Effective E-Business, Implementation Strategy, Re-engineering business Processes

5. INTRODUCTION

Global talent exchanges are leading to very diverse workforces. Advances in technology over the last two decades have enabled companies to obtain, organize, analyze, store, and retrieve huge amounts of information. "These capabilities allow instant communication and connection. As a result, consumers have more power to influence their buying experience than ever before. They can shop from markets anywhere in the world. As they gain access to global products and services, they demand better quality, lower prices, and faster delivery. The development of formal models related to the organizational aspects of an enterprise is fundamental when these aspects must be re-engineered and digitalized, especially when the enterprise is involved in the dynamics and value flows of a business network. E-business offers organizations opportunities to create new ways of doing business improve connectivity across the globe and achieve transparency of business processes" [2]. If supported with an appropriate business strategy, organizations can use e-business to achieve a better integration and alignment of business processes, technology, and people. Internet shopping is on the rise, the customers are becoming more and more demanding and the online retailers are not winning them just through the provision of standard service but with customization and responding to their needs. The customers have started to pay more attention to the level of delivery service which is becoming for them of higher importance. Success is becoming to be granted with the speed of the order fulfillment. New and challenging requirements are posed on the e-commerce supply chain and the ease of starting selling online is offset by the fact that the inventory is getting to be a must. Nevertheless, not every online retailer may afford to have substantial inventory holdings.

E-business leverages the power of information technology and electronic communication networks, such as the Internet, to transform critical business strategies and processes. E-business removes traditional boundaries of time and geography and makes possible the creation of new virtual communities of suppliers and customers. As indicated in the definition, e-business also includes the exchange of business information that may or may not directly relate to the purchase or sale of goods or services. For example, businesses are increasingly using electronic mechanisms to improve company performance by facilitating collaboration and data sharing among employees as well as providing improved customer support.

The multicultural characteristic will provide organizations with a certain level of competitive edge in the global business environment. Countries, and societies within countries, need to be understood so we can provide collaborative products/services to them.

Companies are feeling increased competition. Regulation is often insufficient and inconsistent. Corporate mergers and acquisitions are becoming more common as businesses look to expand and leverage new opportunities. Flatteners open sourcing, outsourcing, off - shoring, supply - chaining, in sourcing, in - forming, and the steroids all share a common trait in that they take advantage of connectivity and virtual adjacencies to enable collaboration and resource sharing. To truly unleash their potential, these new capacities and capabilities demand a different type of organizational model.

6. LITEARTURE OF SURVEY

Internet shopping is on the rise, the customers are becoming more and more demanding and the online retailers are not winning them just through the provision of standard service but with customization and responding to their needs. The customers have started to pay more attention to the level of delivery service which is becoming for them of higher importance.[5] Success is becoming to be granted with the speed of the order fulfillment. Hence of new and challenging requirements are posed on the e-commerce supply chain and the ease of starting selling online is offset by the fact that the inventory is getting to be a must. As a logistics service, e-commerce supply chain outsourcing is considered to be a business with significant barriers to entry in terms of the initial investments.

Glover et al. (2001:1-2) state that e-business leverages the power of information technology and electronic communication networks, such as the Internet, to transform critical business strategies and processes. E-business removes traditional boundaries of time and geography and makes possible the creation of new virtual communities of suppliers and customers. As indicated in the definition, e-business also includes the exchange of business information that may or may not directly relate to the purchase or sale of goods or services.

As the global market becomes more competitive, commercial industries strive to gain, or maintain, competitive advantage. One avenue for achieving this is through strategic alliances. In order to effectively implement strategic alliances, a company must consider procurement to be an integral part of the overall business strategy. Strategic alliances result in long-term commitments of both personnel and monetary resources to ensure both the buyer and supplier benefit from the relationship. These alliances have potential to drive down costs, improve productivity, and increase margins. In the past, finding sources of supply typically involved finding suppliers who could provide the desired product or service and then deciding who provided it at the lowest cost. As organizations begin looking more at total lifecycle cost and less at purchase price as the major factor in the decision process, it becomes imperative for firms to make a best-value decision.

E-business can be classified into four main types according to the type of buyer and seller in the transaction (Chen, 2001: 2):

Business-to-Business (B2B);

Business-to-Consumer (B2C);

Consumer to Consumer (C2C); and

Consumer to Business (C2B).

E-business is composed of the elements of e-commerce, but also includes operations that are handled within the business itself.

Business-to-Business (B2B)

Once Web-based sell-side applications were implemented and businesses began using the Internet to sell merchandise to customers, businesses quickly realized they could Web-enable their buy-side by implementing Web-based e-procurement capabilities. Buyers select items from electronic catalogs that are updated by pre-approved suppliers. Purchase requests, approvals, order issues and acknowledgments, tracking shipments, invoicing, and matching invoices to purchase orders all occur electronically.

Business-to-Consumer (B2C)

In the last few years, a significant growth in the retailing over the Internet has been witnessed. Many companies were established especially for retailing online, and some brick-and-mortar retailers augmented their operations by bringing them onto the Web, while others moved completely from physical structure to the Internet. B2C sites can offer customers an attractive Web storefront, shopping areas, and multimedia product catalogs. This could range from an exciting shopping experience with audio, video, and moving graphics, to a more simple and comfortable look and feel. Thus, most retail e-commerce sites allow customers to browse product sections, select products, drop them into a virtual shopping cart, and go to a virtual checkout station when they are ready to pay for their order. Customers of a successful Web store must feel confident that their credit cards, personal information, and details of their transactions are secure from unauthorised use. They must also feel that they are dealing with a trustworthy business, whose products and other website information can be trusted to be advertised.

Consumer to Consumer (C2C)

Information Technology (IT) and Its Role in E-Business(21st Centruy Modern Business)

Organization: IT is breaking down corporate barriers, allowing functional departments or product groups (even factory workers) to share critical information instantly.

Operations: Technology shrinks cycle times, reduces defects, and cuts waste. Service companies use technology to streamline ordering and communication with suppliers and customers.

Staffing: Technology eliminates layers of management and cuts the number of employees. Companies use computers and telecommunications equipment to create "virtual offices" with employees in various locations.

New products: IT cuts development cycles by feeding customer and marketing comments to product development teams quickly so that they can revise products and target specific customers

Customer relations: Customer service representatives can solve customers’ problems instantly by using company-wide databases to complete tasks from changing addresses to adjusting bills.

Information gathered from customer service interactions can further strengthen customer relationships.

New markets: Since it is no longer necessary for customers to walk down the street to get to stores, online businesses can attract customers to whom they wouldn’t otherwise have access.

Ubiquitous Computing and U-Commerce

The modern era of computing; Ubiquitous computing is a paradigm shift where technology becomes virtually invisible in our lives. The advancement of new technologies such as radio frequency identification (RFID) and sensor networks has initiated a trend towards ubiquitous computing, which is also called "anytime, anywhere" computing (Lyytinen et al., 2004). In a ubiquitous computing environment, computing devices, applications, networks, and data will be fully integrated and merged (Junglas & Watson, 2006). Due to the "anytime, anywhere" pervasive computing, organizational activities become more nomadic. The ubiquitous computing environment will make possible new forms of organizing, communicating, working and living.However, ubiquitous computing systems create new risks to security and privacy. One important technology for ubiquitous computing is radio frequency identification (RFID) technology. Like other IT value measures, RFID business value includes lead time reduction, productivity improvement, cost reduction, increased revenue, customer satisfaction, competitive advantage, inventory reduction, and other metrics of performance (Michael and McCathie, 2005; Angeles, 2007; Veeramani et al., 2008). A recent survey shows that the cost of the tags and hardware, and the availability of these components are the main issues hampering the widespread adoption of the technology by suppliers (Vijayaraman and Osyk, 2006). Many organizations take a "wait and see" stance and hope to learn more from the early adopters, since the suggested benefits of RFID are still uncertain while RFID technology requires significant up-front investment .

Product Choice Strategy for Online Retailers

An important strategic issue for managers planning to set up online stores is the choice of product categories to retail. While the "right" product category would depend on a number of factors, this session focuses on the following two factors: compatibility of the product with the online channel, and the competition between the traditional brick and mortar channel and the online channel. This is to acknowledge two well-known facts: Certain products are more suitable for selling through the Web than through other channels; and an online retailer competes with not only other online retailers, but also traditional brick and mortar retailers.

Trust is a major issue in e-markets. It is an even more prominent issue when online shoppers trade with small, less-established e-vendors. Empirical studies on Web seals show that small e-vendors could promote consumers’ trust and increase Web sales by displaying Web seals of approval.

In the new era of e-commerce, small businesses have emerged as the driving force because these firms comprise a significant proportion of economic activity. The spending of small businesses on IT activities continues to grow as they rely more and more on the Internet to be competitive. All

TODAY’S BUSINESS WITH TOMMOROW’S TECHNOLOGY (21st century Business)

Kalakota and Robinson (1999: 4-6) explain how e-commerce evolved and influenced businesses. They also answer two questions: Why is e-business important and what is driving e-business? As a vast reconfiguration of business on an unprecedented scale is occurring.Kalakota and Robinson? (1999) explain that e-commerce is an economic solvent that dissolves old business models, changes the cost structure and rearranges links among buyers, sellers, and everyone in between. E-commerce is, therefore, a relationship solvent, melting traditional boundaries between companies’ partners and customers and so changing the nature of relationships.[6]

E-business designs are the first-level strategic weapons in the new digital economy. In an evironment in which multiple variables, including technology, customer requirements and supply chains are changing simultaneously, the old weapons of differentiation, including low cost, quality, and incremental process improvement are playing a lesser role in sustaining growth. Business design is no longer an optional part of corporate strategy; rather, it is the very core.[8]

7. METHODLOGY

The technology which enables the 21st century business caleed as e-business , from major components of a fully integrated plan are strategic business planning, business process reengineering, corporate technology policy, application planning, information and data planning, infrastructure planning, and resource management.  This thesis develops an integrated research model to examine various factors affecting the IT adoption in the context of the Unified Modelling Language (UML). UML is one type of business process modelling techniques, which in turn is a key aspect of the business process reengineering. The proposed research model is based on IT adoption framework and organizational culture theory.[9] Normally there are three participants or components or artefacts in terms of e-business; these are users, service providers, and services. Some users bind services as well services, hence depending upon the client it may vary as of domain specific e-business. This thesis is about understanding how much effectiveness achieved from e-business model. The existing literature conceptualize e-business model from mainly three perspectives technological, managerial and business. Accordingly, it is deficient in having a theoretical understanding of the internal dynamics of this e-business model. To achieve this, this research employed Resourced Based Theory and Competing Values Framework to understand the impact of the model. The Resource Based Theory is utilized to set the foundation by viewing technology and it’s affecting business process or functions and the employees as a resource for an organization adopting the e-business model. E-business also promises several benefits to organizations such as reduced operation costs, labor, and time w.r.t to all dimensions.

As of business 21st century needs to be revolunised, Hence in this theis first section of the thesis presents the theory of strategy and frameworks that are used for the strategic analysis of internal and external environment of the e-business considering any organization. The section is complemented with the theoretical background of e-business strategy and e-business supply chain. Using the presented analytical approaches, the second section embodies an internal and an external analysis of the business. Further, the results of the analytical section are then translated in the third section into the formulation of a strategy for establishing an e-fulfillment provider. The introduced strategy is designed according to the outcomes of the internal and the external analysis and enables the verification of the assumptions made by the author of this thesis.

This perception corresponds with the five development phases

Stating the vision and objectives

Strategic analysis as continuous process,

Strategy development1,

Strategy implementation, and

Monitoring.

In order to effectively leverage their capabilities, businesses must determine what products or services are best developed internally, and which should be obtained through external sources. In general, four sourcing strategies are available to all players in the market: make-or-buy, outsourcing, in sourcing, and strategic sourcing [13]. Opponents of strategic sourcing offer valid reasons for concern. Just as there are many benefits associated with implementing these strategies, there are several drawbacks that must be considered. Some of these include a reduction in the supply base, loss of freedom to change sources, switching costs, and reduced

competition. Both parties also face increased risk by entering into an alliance, as each is possibly subject to hold-up or opportunistic behavior by the partner.

Virtual world of the future E-business requires keeping in mind some basic rules:

E-business employs "disruptive technology." While it can improve and enhance business, it can also disrupt the value chain by changing the way players within it interact;

E-business success is not about technology; it is about organizational change management and about users working in new ways, both within their company and with extraprise partners in value networks. It is also about using technology to enhance existing relationships and create new ones;

In the digital world, the company that owns the customer relationship and the customer knowledge is king. Companies must determine if they are the party in the value chain that owns the customer relationship. Whatever a company’s position, leadership must not only know what it knows, but know what it does not know. It must also be able to find and create networks with partners who can fill that knowledge gap;

Companies will constantly be creating new services based on their digital assets (information and processes). Some intermediaries (particularly those that define best practices) will emerge within the value chain, others will be forced out. Old and new intermediaries will fight for position.

Commoditization of products and services will move farther and farther up the value chain until, ultimately, everything upstream of customer contact will be a commodity. This means companies will continually be fighting to become knowledge or network masters. Companies that fail to do so will face life as low-margin commodity producers.

Website privacy policy

E-business Web site should have a privacy policy that: tells visitors what information about them will be stored; states exactly what the information about its visitors will be used for; and states whether the company intends to pass on the information to third parties or to use the information for other non obvious purposes (i.e.. give notice and offer choice). In offering choice, let people choose whether or not you may use the personal information you collect for purposes other than those for which you originally collected it. E-business Web policy also requires users who register on-line to expressly give their consent to various data uses; draws up procedures and develop back-office systems to ensure that the company meets its stated and policy obligations; and guidelines and resources to keep up with the ever-changing field of privacy.

8. INDUSTRY RESEACH ANALYSIS

Dell, value is defined as the convenience of purchasing a high-quality product at a low cost, making the purchase process convenient has resulted in an explosive growth of Dell’s Web-based sales. In the quest for customer-centricity, is the product or process oriented? How is the customer sold to – through a sale force, reseller channels, or a call center (direct)? In the quest for efficiency, how is the organisation structured for efficiency? Dell is innovative in not only how it sells but also manufactures computers. The company uses a build-to-order (BTO) business model and Dell does not start building a machine until an order is received. This helps keep computer components and finished-computer inventory levels low, which in turn controls costs. Understandably, competitors Compaq and IBM are working overtime to replicate Dell’s BTO e-business design. In the quest for cycle-time reduction, how much does the company manufacture internally, and how much does it outsource? How is the product distributed?[10]

The electronic shop can be thought of as the ‘look and feel’ of the screen that fronts the customer. Just as with high street stores, the aim is to entice the customer to browse and, ultimately, to buy. The fundamental prerequisite for presenting products and services online in the e-business world is the catalogue. These are central, and are the electronic equivalent of a shop’s shelves, goods, special offers and departments. The catalogue is the online representation of what is ‘for sale’ (or more correctly, what is available for trading). By its very nature, e-business needs to emulate in some way the customary direct exchange of cash for goods. Attitudes to the use of different payment mechanisms are changing (and vary when considering Europe, the US, Asia-Pacific or the whole world). A priority in establishing an e-business is to put in place an acceptable mechanism for payment.

The following describes a few of the more important emerging technologies that companies are employing to competitive advantage.

Area Networks: Computers linked together to share data and system resources. The networks can be local (LANs) or can extend over a wide area (WANs).

Cellular Phones, Wireless Communications: Electronic devices that allow users to send voice and data communications from almost anywhere, without being tied to a phone line.

Client/Server Systems: Systems that store software and data centrally on computers designated as "servers," and that make the software and data available to all network clients (users).

Data Extraction/Analysis: Software that enables users to find information in massive databases, extracts it to personal computers, and analyzes and reports it.

Decision Support Software: Software that helps users makes decisions in situations where judgment, experience, and intuition are required.

Desktop Publishing: Software used to design and produce professional documents that contain text, charts, pictures, graphs, and spreadsheets.

Electronic Data Interchange: Systems that allow for direct, computer-to-computer transmission of business documents and transactions.

Electronic Funds Transfer: Systems that allow for direct, computer-to-computer transfer of monetary funds.

Expert Systems: Software that captures the knowledge and expertise of experts and is used by non-experts to make more informed decisions.

Fax, Fax Modems: Hardware and software that transmit documents, pictures, graphics, and signatures over data communication lines. Fax modems allow computer-to-computer or computer-to-fax machine transmission of the same data.

Groupware: Software that facilitates the work of teams, allowing them to share information, brainstorms, create documents, design products, and perform other tasks.

Image Processing: Electronic capture of paper documents through the use of scanning devices. These images can be processed and transmitted electronically in many different ways for many different uses.

Intelligent Agents: Software that learns a user's data needs and searches available systems and databases to find it. It is also able to carry out specific user instructions.

Internet, Electronic Commerce: An international network of independently owned computers that operate as a giant, seamless computing network. This network is greatly facilitating electronic commerce, the use of electronic communications to support business initiatives.

Intranet, Extranet: A company-wide network that functions like the Internet. When customers and suppliers are allowed access it is sometimes referred to as an Extranet, and is a likely future platform for EDI.

Mail Technologies: Software for communicating and sending messages electronically or over phone lines to shorten communication times and speed up communication tasks.

Neural Networks: Software that imitates the brain's learning processes. It can learn how to do specified tasks, such as discover possible fraud.

Telecommuting: Hardware and software that allows workers to use computers and communication lines to work from their homes.

Teleconferencing: Technology using audio, video, or computer capabilities to allow people at sites all over the world to conduct meetings without leaving their offices.

Workflow Technology: Software that automatically routes a document, transaction

Half of all enterprises have IT systems for managing orders and purchases. However, only a quarter of such companies have links between these systems and IT invoicing/ payment systems. Only 14% of companies have links between their IT systems for managing orders and internal reordering systems.

E-business scenario categorized under four broad headings:

Regulatory / Business Environment and workplace skills

Supports to enterprises

Provision of Information and Promotion of Good Practice

Research / Monitoring

Regulatory / Business Environment and workplace skills

A good telecommunications infrastructure.

A good legal framework including effective enforcement of rules against fraudulent or malicious behavior online.

Effective IT security policies at the level of the firm.

An effective and cost competitive support infrastructure.

Increased usage of the Internet by trading partners (national and international, including, where relevant, consumers).

Availability of skilled and accredited independent consultants.

The possibility of easily interacting electronically with external bodies such as the government, financial institutions, utilities, major customers etc.

Supports to enterprises

Provision of Information and Promotion of Good Practice

Acquire the skills needed to take industry driven or accelerated changes into account when formulating business strategy.

Acquire the skills needed to focus the projects on areas that will give the most business benefits.

Apply conventional sound general management principles (e.g. cost benefit analysis, proper project management etc.) to the planning of IT investments and to the day-to-day management of IT operations.

SUMMARY

Emerging e-business concepts and technologies for sustainable business practices and applications which are to be drawn from the recent studies include:

(1) Previous orientation of some firms towards EDI-related systems proves to be important in the B2B development;

(2) m-commerce has enormous potential to become a dominant form of market mechanism; (3) perceived hedonic benefits from the mobile service are the strongest factor that drives user’s intentions to use the service;

(4) Web services have shown promising results such as greater development productivity gains and easier and faster integration with trading partners. However, despite the rapid development in the Web services area, many issues including information security still remain to be resolved in the context of e-commerce;

(5) Supply chain RFID is an emerging application that has attracted a lot of attention from researchers and practitioners.

[1] AMIT, R.; ZOTT, Ch.. Value creation in e-business. Strategic Management Journal [online].2001,vol.22[cit.2011-03-29]. Available at: <http://uazuay.edu.ec/bibliotecas/ebusiness/Value_Creation_in_E-Business.pdf>. ISSN 0143-2095.

[2] CHAFFEY, Dave. E-business and E-commerce Management: Strategy, Implementation and Practice. 4th edition. Harlow: Pearson Education Limited, 2009. 764 s. ISBN 978-0-273-71960-1.

Rud, Olivia Parr (2009). Business Intelligence Success Factors: Tools for Aligning Your Business in the Global Economy. John Wiley & Sons, Inc., Hoboken, New Jersey.

Complete report – should not exceed 12000 words

Abstract (250 words )

Contents

List of tables & List of figures

Introduction – aims of the project and brief explanation on the format of the report and its chapters

Literature survey (can write about ebusiness/ecommerce and how it has emerged as a critical business strategy)

Methodologies (can include the following (1) business process modelling (2) Scenario planning and the two axes approach )

Industry Research and Analysis

This is the main body of text and should contain the following

A detailed research of couple of contemporary companies dealing in e-business and the business process models they employ.

Based on this research a scenario planning needs to be developed based on current and future ebusiness trends. There a couple of different scenario planning methods but my preference would be a two axes approach with about 3-4 diagrammatic representations. (This link is an article about technique http://www.wired.com/wired/scenarios/build.html)

Based on the scenarios and companies researched, a suitable business process model should be proposed that the companies can adopt. This section should also address change management techniques that can be considered by the companies.

There should be some technique applied to evaluate the proposal made. My idea was to develop a business simulation but some other technique may be applied.

References