People are now buying everything over the Web--not just books and CDs. Online consumers ar
Many of you may be asking, "What does this mean to my company? Why should I even pay attention to this Internet hype?" It has everything to do with survival. That's right- survival. This is a fundamental change in global business, and there will be a point in the not-too-distant. future where. it will be impossible to catch up, or even stay in the game!
In the past, companies that achieved excellence also snatched up market share and competitive advantage. Companies who fell short of this standard received lower market share but could still survive. That was when the world of business was more forgiving.
Times have changed. On October 15,1995, the "Knowledge Age" arrived and ushered the Information Age out the door with the market capitalization of Microsoft surpassing that of IBM. Today, leveraging knowledge, relationships, and information around a well-defined business model distinguishes great companies from average ones. The great ones take advantage of their core competencies and outsource non-core competencies in order to achieve an agile business model that can respond quickly to e-business opportunities.
Let's look at the four cornerstones in e-business that should be a part of your business model.
Controls through the ERP dashboard. An integrated technology architecture allows you to distribute real-time information instantly across the enterprise. This fundamental foundation, known as the Enterprise Resource Planning (ERP) system, must become the "dashboard" that provides controls and status information to allow forward decision making. For example, discovery of an inventory problem a month after it occurs may enable use of this information to correct a problem. But a month is like dog years in e business! You need information to act on when the problem occurs, and that's why an integrated technology architecture must be in place to succeed in cyber commerce. A word of caution here: it takes years to realistically achieve this integrated infrastructure.Waiting for the newest wave of hardware or software can be the kiss of death. Relying on old legacy financial systems is like driving down the highway by looking in the rear-view mirror v. s. looking at the dashboard to understand performance NOW.
Get rid of waste. Once the fundamental infrastructure is in place, the concept of the "extended enterprise" comes into play. It's not just about integrated "lowest-cost" manufacturing and streamlined distribution processes, although both are key components. It involves taking waste out of the entire value chain through effectively implementing technology, along with building strong alliances and partnerships. Take General Electric (GE), who has informed its suppliers that it will conduct its entire procurement process on the Internet via electronic procurement communities. So if a company wants to do business with GE, it needs to do it GE's way-online.
Know the customers. Best-practice companies today have a deep understanding of their customer base and their levels of satisfaction with their products and services. E-business will have a dramatic impact on those companies who continue to market their products and services via the costly face-to-face direct selling model. Companies who foster online communities and communications with their customers will enjoy customer loyalty and market share.
Information is power. Finally, none of the other three cornerstones is very meaningful without accurate profit information. The streamlining process is impossible without cle
A.To tell why you should shift to e-business.
B.To inform. you of some steps to bring your business online.
C.To suggest that e-business will replace the conventional business model.
D.To advice you to regard the four cornerstones as your e-business model.