Putting eBusiness in Context
It's time to delve into eBusiness. Before we take a closer look at the tools that drive it, let's each try to understand this landscape in general.
Recall the role computers now play in business. We've been using technology to do work for us for aeons! It probably seems obvious now that information technology can be used to do certain tasks more rapidly, more efficiently, with fewer errors, or at reduced costs. This is an important benefit.
But, as we've already discussed, something has changed recently...we're entering a truly intercreative Networking Age. Dramatic innovation --the advent of the Internet, new software, and new standards and protocols --has introduced new, disruptive, dynamics to communication and organization....this is bound to dramatically impact Business!
What are some specific factors that are associated with the rise of ebusiness?
- Globalization, the rise of English as a Lingua Franca for international business
- Dramatically decreasing costs (see Moore's Law)
- Rise and convergence of content, access devices, and bandwidth have reached critical mass and created a mammoth network effect.
- Investment: swooning capital markets, and Y2K scare
- Can you think of more?
You may be thinking to yourself at this point.....these are all interrelated. Did globalization empower a technology revolution or did a technology revolution empower globalization? It's highly debateable. There really is no single set of factors that have led to the rise of eBusiness, but rather a whole confluence of trends and mutually reinforcing new ideas.
What's the impact? Let's take a closer look.
How do we separate eBusiness practices?
eBusiness is spreading fast...but there are still many issues preventing us from taking full advantage of its potential. What are some barriers to further widespread adoption? Are they lasting?
Posted by Mark Hemphill on January 24, 2006 | Permalink
I believe that eBusiness for the Western countries will become an increasingly popular way of doing business; however there are still many third world countries that do not have access to computers or this concept of ebusiness. So I believe that in order for global business to take place countries will have to still have the traditional way of doing business as well as the new ebsuiness phenomenon in order to incorporate everyone's needs.
Posted by: AShley Farrell | Jan 25, 2006 10:40:42 AM
One huge barrier to eBusiness is trust. Many people will not trust buying items on the internet, even if the site is trustworthy. This lack of trust probably comes from the internet being a new idea that people do not really understand. I think that our generation is much less skeptical because we know more about the internet, and in the future our generation will be using the internet to make a large portion of our purchases.
Posted by: Mark Corney | Jan 25, 2006 11:05:43 AM
I agree with ashley farrel completely but why those countries can not be a part of this technological blessings called e-business.There are some boubdaries of e-business thats why it is not be properly used by the third world countries.But those countries should take necessary steps to be a part of this great feature of technology.
Posted by: MD.GOLAM MORTOZA | Jan 25, 2006 11:10:43 AM
How can a country that has no money or proper government take those steps that are required to join us in our great technological age?
Posted by: Mark Corney | Jan 25, 2006 11:14:46 AM
I agree with Ashley for a point well made. As she said e-Business has it limits. In third world countries many businessmen don’t trust there calculator. Just imagine how a person who doesn’t trust his calculator can react to the eBusiness concept.
People in the third world country prefer the traditional way of doing thing like; rechecking calculation on paper to make sure the calculator did not lie, purchasing what you can touch and see etc.
And when it comes to trust even a majority of western populations don’t trust the internet that much, because of many people who uses the internet to steal.
eBusiness still have a long way to go for it to become a global market. But I have no doubt that we are getting there, because if you compare eBusiness today and when the internet was introduced you will see that it has grown beyond our expectation and it still growing.
Posted by: Nkulu Patient | Jan 25, 2006 12:53:06 PM
Again, I have to agree with the comments that have been made. Mark, I totally agree with your comment about trust. A lot of people would not trust buying things online. I think many people, especially of the older generations, would be kind of skeptical of buying thing online. I know my grandparents don't really even understand what a computer is all about....they'd be totally clueless about the internet. And not only that, I know of a lot of people that do not like using their credit cards to buy things online. The site may seem like a trustworthy site, but how do you know that for sure? And how do you know that it's only that particular company or store that receives your credit card information? I'm sure most of these sites are trustworthy and you probably wouldn't have a problem with someone stealing your credit card number, but you never know. Technology is doing great things for us, but it can't also just as easily work against us.
Posted by: Jen | Jan 25, 2006 12:58:41 PM
First of all I'd like to say that the process of understanding the full capabilities of Ebusiness is something that I believe will take many more years from what we know today.
Secondly In regards to Ashley's comment, I'd like to say, that third world countries have already felt the effects of Ebusiness, since corporations began taking advantage of the extremly low labour costs that can only be obtained in those third world countries. I believe that for any community to survive this new fast track way of business (of constantly trying to find new methods of reducing costs), that communities will either have to specialize in the intangible aspetcts of Ebusiness while less fortunate communities (such as those in third world countries)will have to continue specializing in the tangible factors of ebusiness such as hands on labour.
Posted by: André A-Rashed | Jan 25, 2006 7:34:03 PM
In reply to the question "What are some specific factors that are associated with the rise of ebusiness?" I think about big cities or countries that are heavily populated, such as Hong Kong. For entrepreneurs who are wishing to open a new business, the physical space is limited, therefore, they can start a small e-business at the convenience of their own home using the advanced technology we have today.
Posted by: Jessica Ellis | Jan 25, 2006 8:53:33 PM
Ecommerce and eBusiness are become universal. Anything we can purchase at a store can now be found on the Internet.
The big matter is we have to believe in online shopping that it’s safe and very simple. Now day’s online shoppers are becoming more sophisticated as they become more comfortable with the concept, and more familiar with how to shop online.
Posted by: md romiz uddin | Jan 25, 2006 9:04:16 PM
Simply i can say that eBusiness is a vast area. whatever western or third world country now everycountry came in the shade of ebusiness.The concept of ebusiness is too simple and clear that people are now becoming comfortable to buy on line.
Posted by: A.K.M TAZUL ISLAM RIAD | Jan 25, 2006 10:57:07 PM
Well, first I would like to say that I agree with the comments that have already been posted. EBusiness and the entire concept of buying things online always has two sides to it. Those who agree and have no problem with the buying material online, and those who do not. In my opinion this is a personal decision to how comfortable a person is with sharing their information, with the possibility of someone else getting their information.
On the other hand I would like to make a comment about what was said in class today. Mark asked the question whether "technology" came before globalization, or the other way around. I think that we needed a little in both areas to be able to advance to where we are today. For example we needed technology of some form to expand our horizons to other lands can lead to our expansion of globalization. Once we realize that globalization is a good economical perspective. Therefore people want to continue to expanding and of course making more money, therefore technology can help them expand. So because of this technology was a force which leads globalization, but at the same time globalization lead technology.
Posted by: Cheryl Mosher | Jan 25, 2006 11:25:46 PM
In relection of Wed class when Mark was asking about globalization and when we thought it began, well I was thing that in terms of uniting and growing on a common ground wouldn't gold possibly be one of the starting points? Since gold had a strong value known across nations it was used to determine a countries wealth, and also when a countrywas hurting. I am just wondering if this could be one of the points in the development of globalization.
Posted by: Bonnie Murley | Jan 26, 2006 8:33:54 AM
One thing that I foresee with this whole idea of globalization is that the "have" countries of our western society will continue to make money (through technological advances), and the "have-not" countries will continue to fall further and further behind. In many cases, these countries are being taken advantage of through cheap labour and raw materials, and the "have" countries use these cheap resources to make huge amounts of money in today's world. (like in the cases of NIKE sneakers, GAP clothes, etc.)
Even in some cases where some of the money goes back to some "have-not" countries (like Iran's oil money), it ends up going to a select few of the country's leaders, creating a huge social divide within that country between the rich leaders and the poor labourers. Now, I'm not trying to make generalizations, because I know there are certainly exceptions to this rule, but that's the kind of picture that the "Americanization of TV and other media" is providing to us and many others around the world through their media links.
Does globalization create more technological advances? Sure it does, but do we all keep up with it? Not at all! Some individuals and businesses do because they have the time, the interest and the motivation (through making money) to do so, but for those of us that are just trying to get through life or a busy work day one day at a time, it's a struggle. I see that as barrier to ebusiness - one of many issues, of course.
So, in today's world, we all need to be at least open to new ideas (like for me, this weblog thing) in order to stay "tuned in" with what is happening in ebusiness and the world as a whole.
Posted by: Michelle Neill | Jan 26, 2006 8:45:43 AM
In regards to the last post by Michelle, I can agree that our countries are growing on the backs of third world coutries, but if you look at the timeline of the world every civilization came to a peak and crumbled. I do not think that this rise in power will continue forever, but that in some way there will be a shift and some other coutry will eventually gain the power and maybe then we will become the third world country.
In regard to trust on the internet, it is hard to believe that the way in which the internet is set up now that everyone will some day trust every site completely. What must happen if the internet is not altered is that the security around credit cards and ways of purchasing must be changed. Take for example the invention of the Debit card instead of cash, this became a safe way of having access to your money without carrying around cash. The internet will become more trustworthy, but also we will get more cautious in how we spend on the internet.
Posted by: Mark Corney | Jan 26, 2006 10:21:22 AM
Investments is crucial for companies to get going in e-business. From designing the web site, to paying people to properly maintain the site. Having proper security on websites is crucial also. Take for example a company like ebay, if there company got shut down for a day. Imagine all the money they would loose.
I agree that trust is a big issue in e-business. A lot of people aren't comfortable in giving their personal information over the world wide web. Some of the sites on the web are probably not as secure with your personal information as you think. It is probably best to take a quick background check on the company before you buy something from the site.
e-business is a real important part of the economy. If there is demand for products there will usually be supply to meet it.
Posted by: Mitchell Watts | Jan 26, 2006 7:49:06 PM
I agree with Mark Corney, but I want to make a little rectification about third world countries.
Those countries that you think has no money or proper government to improve their technology, for the most part there are some other factors behind the scene. Some of these governments have major concern about that e-business concept. They believe if a system is more technological, they will lose some advantages ($$$); therefore they are trying to maintain an archaic system. The big guys, who owns big enterprises in these countries are spending big bucks($$) on the government to press little businesses. For example, Mitsubishi, Toyota, Nissan, Mazda, Ford, to name a few, are making way much money in some third world countries than any other country in North America. I had the chance to research the Mitsubishi dealership in a third world country, and I can not believe how their technology was advanced. But, these big guys are pressing down the small businesses.
To come back to my point, when it comes to some countries, there are many constraints that is keeping them from taking a step to a more technological system.
Posted by: Markess Charles | Jan 27, 2006 8:37:38 PM
To get back to Jessica's question on "What are some specific factors that are associated to the rise of e-business?" I think this is the question of the greatest importance. How about convenience for one. Do I travel to the nearest city from wherever I live to buy the item I need, or do I roll out of bed onto the computer and place an order, with delivery within a couple of business days. It seems almost stupid to go to retail outlets. There is an endless stream of information about the products you wish to buy on-line, no lineups, no traveling expenses, no traffic, and on and on. I think the world will continue to support their local economies, however the operation of businesses will become more and more of a challenge for those who fail to expose their products to the global economy.
Posted by: Shane Kelly | Jan 28, 2006 5:09:32 PM
I agrees with Shane's comments that ebusiness and buying goods and services online is the future and the only logical way for business transactions to take place. However, wouldn't this destroy many other routine things that we do in our everyday life like going outside and communicating with each other physically! It seems like that is what ebusiness will eventually come too. Everyone would just stay home on their computer all day. If this is the goal of eBusiness then I don't believe it is a very good idea, even if it means no more traffic.
Posted by: Justin Richard | Jan 29, 2006 9:26:23 PM
I strongly disagree with the prediction by Justin that eBusiness is going to get to the point that everyone just stays at home on their computer. There will always be old fashion people that want to try on clothes or pick things out in stores opposed to buying them on line. Some people are just like that. Althought, like what Shane was saying, things are definately heading in the direction of more and more business being run online. It makes sence that more and more business are being run on like. From a producer stand point, they don't have to pay for rent in a mall, they can just store their products in a wharehouse, they dont' necessairly need as many employees, because the customers don't need anyone to help them try stuff on or that sort of thing. All and all, it allows the producer to charge less for the product at the end of the day because he/she can cut costs and the customer is satisfied as long as he/she gets what they want at a responable price.
Posted by: Andrew MacSwain | Jan 29, 2006 11:36:13 PM
I think eBusiness will continue to grow in North America and that eventually the rest of the world will catch up. Of course the option's that are available today will still be there for the people that aren't interested in doing eBusiness. Personally I am grateful for internet shopping!!!
Posted by: Whitney | Jan 30, 2006 12:41:26 PM
eBusiness is growing very fast, there is almost nothing in stores that cannot be purchased online. This has become an everyday thing in North America. It is a shame, however, that there is less and less people to people interaction. More people are simple going online and purchasing rather than going to the stores. This has and will continue to cause more and more layoffs because people simple aren't going to the stores as often. I like my internet shopping but I also like the in-store shopping and getting help with what I need from the sales people. Communication skills are very important and if the amount of human interaction continues to decrease those skills will be lost. This is a problem which I think about from time to time. Does anyone else in the class share my thought?
Posted by: Jill Ellsworth | Jan 30, 2006 1:57:47 PM
Hi Jill, I see your point and I would just like to add that hopefully people will always have the choice to go out and buy something at a physical location. I'm sure many people enjoy it to an extent (some more than others), and I sure hope that option isn't taken away from those who enjoy it. However, if you think of it all in a new context, maybe our personal interactions will benefit, and would be better aimed at more social reasons for comunicating rather than focusing on the interactions lost do to faster less human involved transactions. Another way to put it is ebusiness will facilitate more time for more meaningful interactions and get rid of those that aren’t so meaningful. That’s just one positive aspect I can think of at the moment.
Posted by: Alastair | Jan 30, 2006 9:01:37 PM
While looking into the value chain and its effects on the economy I discovered an interesting area in which the economy has been effected. A major competition has been created along with the creation of a shared value chain because now people are looking around to get good deals on the things they won't have to produce themselves. This can range from moving your operation to be closer to a good you need, or buying out rights on certain goods so that you control that factor. For more info on the Value Chain click here
Posted by: Mark Corney | Jan 31, 2006 11:21:04 AM
The question whether globalization empowered technology or did technology empower globalization is a good question that got me thinking. I do think it works both ways because technology has enabled us with so many different things and has given us the chance to move forward in everyday things. Technology has been able to provide advances in many fields of study, but technology may not have advanced as it did if it had not been for globalization. Globalization has given us to advance so many things, but technology has taken those advances a step further. I think that these two items, globalization and technology, are intertwined and not two different items.
Posted by: Courtney MacDonald | Jan 31, 2006 3:27:18 PM
Did globalization empower a technology revolution or did a technology revolution empower globalization?
I really liked this question. it got me thinking and what i came up with is that i think that technology was the driving force that started what we call globalization. With out the communication tecnology that we have come up with over the last ten or so years we would never beable to support the type of global market that we have. Now don't get me wrong i think that globalization has helped in advancing technology but i think that the technology came first and smart business people seen that it could be used for ebusiness and that is what started the globalized world we live in today
Posted by: Nick Somers | Jan 31, 2006 4:14:44 PM
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