Monthly Archives:August 2012

From traditional business to e-business

Admin post on August 17th, 2012
Posted in Banking

D. Biniasz asserts that one of most visible changes in the world economy is the rapid development of electronic commerce, which has stimulated the development of a “new economy”, providing new opportunities for businesses while also presenting them with unique challenges. Among the opportunities, the author provides examples, such as the development of new business models, new offers of goods and services, as well as new sources of competitive advantage. Contemporary organisations exploit the internet, as it is one of the most important tools for communication in the modern commercial environment, especially in catering to the needs of modern consumers. They also frequently use the latest technology and provide appropriate information technology solutions when devising strategies for improving the effectiveness of business processes. As the abovementioned author correctly identifies, these new technologies, along with the global internet network and changes to consumer awareness, present an opportunity for the design and use of innovative business solutions.6

One such solution is e-business, which enables organisations to undertake new projects. According to D. Biniasz, e-business is defined in the literature as the organisation of essential business processes using the internet. These processes include, among others things, making contacts with other parties, advertising, as well as general activities carried out on the basis of arrangements that are possible through the development and use of the Internet. This is because web technology has enabled substantial improvements to be made in creating enterprises, as well as managing them. Some of the benefits of management systems based on internet technologies include: that they allow for lower transaction costs and greater choices in suppliers to be made; shortening of delivery times; allowing for the optimisation of price deals; and ensuring greater knowledge of suppliers in the market place. The author concludes that the information improvements provided by the internet, have facilitated organisational operations and assisted them in achieving higher profits. At the same time, the author states that some of the major objectives in organisations having an online presence are: the promotion of goods and services; providing data and information about those goods and services and of the organisation itself; and allowing customers to acquire goods and services online.

As noted previously, D. Biniasz asserts that organisations that are not prepared for the increased competition generated by the Internet may be marginalised in the global market for goods and services. Therefore, organisations need to put more emphasis on the “control” of competition by using modern technologies. P. Lech adds that the simplest approach for an organisation to achieve a competitive advantage is to have a business idea that is better than its competition, as well as having the tools to achieve this idea. The transitioning of an organisation from the traditional business sphere to a business sphere that uses electronic commerce methodologies, must be adapted to that organisation’s specific characteristics. It should also be noted that in implementing new technology, changes may be made to both computerised hardware and software systems, which can have an impact on employment. It is important that such changes are implemented appropriately so that they do not adversely affect an organisation’s employees, in order to prevent, for example, production bottlenecks or manufacturing defects.