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Electronic Commerce (Networking Serie 2003) Authors: Loshin P.,  Loshin P.,  Vacca J. R. Published year: 2004 Pages: 88-90/260

Chapter 10: Strategies, Techniques, and Tools

“Men have become the tools of their tools.”

—Henry David Thoreau (1817–1862)

Overview

E-business is delivering tremendous benefits in some fields: making financial management more efficient, automating activities in human resources, improving vendor-buyer relations in supply chains, streamlining workforce and project activities, and providing managers with the analytic data they need to improve decision making. There has been mixed success in other areas; retail e-commerce, for instance, has expanded exponentially, but technical glitches and delivery problems have dampened customer satisfaction. In spite of the uneven record, most statistics paint a picture of e-business as an enticing way to conduct business.

• As of February 2003, there were more than 637 million people online.

• Companies that use e-business technologies to replace paper-based purchasing processes have reduced individual transaction costs from as much as 0 to less than .

• Reliable estimates indicate that the healthcare industry could save billion a year by using e-business processes to improve supply changing efficiencies ^[1] .

^[1] “Building an e-Business Strategy: What to Do Now. What to Do Next,” 2003, Lawson Software, All rights reserved, Lawson Software, 380 St. Peter Street, St. Paul, MN 55102, USA, 2003.

E-Business Now

Those interested in adopting or refining an e-business strategy are dealing with mixed signals. On one hand, there is reason for caution. Stories of failed dot-com companies that made big promises, but didn’t deliver, fill the financial pages. Long implementation periods and complicated “transitions” give many managers pause. High costs for technology that may be quickly obsolete also have a dampening effect on the e-business acceptance curve.

And yet, the promise of e-business is such that it overwhelms most objections. From backend process reengineering to frontend customer convenience, e-business offers what most organizations need to grow in a worldwide economy and compete against a host of new rivals. In some industries, the proof is already there and the case for e-business is especially compelling:

• Healthcare organizations are using Web-based supply chain processes to radically reduce costs and improve patient care. They are also using Web-based human resource systems to recruit and retain qualified professionals in a very tight labor market.

• In retail, Web-based financial applications are greatly simplifying the details of franchise management, reducing paper-based transactions, improving communications, and providing easy-to-use analytical information at the store level.

• In the public sector, schools and government offices are adopting e-business technologies to facilitate group purchasing, reduce operational costs, and make services and information more accessible.

• The financial services industry is using e-business technology to reduce procurement costs and to introduce new services to customers.

• The professional services industry is using Web-based applications to track and maintain relationships with employees across multiple jobs and sites, and fully facilitate projects, significantly reducing the time from opportunity to cash-in-hand ^[1] .

Other industries are also finding that e-business is changing the way they handle traditional tasks , how they go to market, and even their business focus. The graphic arts industry, for instance, is replacing paper-based, prepress proofing with online proofs that can be reviewed quickly and cheaply. Small companies are finding they can compete worldwide through Web sites linked to online catalogs. Application Service Providers (ASPs) are creating whole new enterprises around e-business solutions developed for niche markets.

In today’s world, e-business is the magic driving the way companies cope with changes in the marketplace . It’s no longer a question of whether or when to implement an e-business strategy. It’s how and with whom.

Electronic Commerce (Networking Serie 2003) Authors: Loshin P.,  Loshin P.,  Vacca J. R. Published year: 2004 Pages: 88-90/260