Importance Of Electronic Business

1035 Words 5 Pages
With over a third of the world’s population currently using the Internet and electronic commerce rapidly growing, electronic business is quickly becoming an essential strategy for companies to consider implementing. It is an initiative of immense impact, one that changes every aspect of the way traditional business is run. E-business is a broad concept that includes all the uses of information technology in business. It extends beyond the selling and purchasing of goods on the Internet that is e-commerce, involving the servicing of customers, collaboration with business partners, and communication across the company. Because of its large area of influence, e-business is reshaping the corporate landscape and significantly impacting traditional …show more content…
In order to effectively and efficiently make the transition from a traditional business design and model to one that is competitive and fully-functional in the digital world, e-business enabled organizations must change existing business processes (Mendonca 2). It is important for them to evaluate their operations and processes and understand what processes are ready to be integrated into the e-business infrastructure. Corporate leaders and managers focus on “…e-business processes for customers and suppliers; IT applications for customers, suppliers and internal operations (all of which must be integrated); and the business readiness of customers and suppliers” (Smith 3). This shifting of business processes to meet market demands radically alters a company’s existing strategies. In today’s e-economy planning horizons in a traditional business model is far too long for the fluid and volatile nature of e-business. Due to e-business related technology constantly changing, a company implementing e-business cannot afford to wait years until it formulates a new strategy. Therefore, the strategy formulation for traditional business significantly changes because e-business strategies must be re-evaluated and modified on a frequent basis. It is crucial for an e-business enabled organization to able to quickly react and adapt to any changes. The organization’s …show more content…
E-business related technology is evolving rapidly and continuously, thus it is critical for company to have the right employees in place with the ability to adapt to significant changes brought by e-business. As a result, expectations of employees are high, and more is demanded of them than before. They are constantly asked to learn new skills and improve their skill sets. Consequently, e-business has not only created new job descriptions due to increased need for technology skills, but it has also increased the need for employee training. In a survey conducted by Information Week and Business Week, 80% of the surveyed companies said that employees have new skill requirements, 73% said that e-business has caused additional employee training, and 55% said that e-business has increased individuals employees’ responsibilities and workloads (Smith 4). In addition to raising the expectations and responsibilities of employees, e-business is leading to work redesign in organizations with the automation of various job processes and efficient communications of information over networks (Mendonca 3). Although some jobs are most effectively done by people, various administrative support jobs such as order clerks, bookkeepers, and human resource assistants can be easily automated or replaced with self-service systems. Much of the information that is collected and

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