Putting eBusiness in Context
It's time to delve further into eBusiness. The following three posts will do just that. 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
- Harnessing collective intelligence
- new approaches in communication and organization that tend toward decentralization
- new tendencies in communication and organization that tend toward disIntermediation
- from top-down, hierarchical to non-hierarchical systems
- from seriality and linearity to non-seriality, and non-linearity (think hypertext).
- 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?
In this class we will be primarily concerned with Business-to-Consumer (B2C) and Business-to-Business practices (B2B). While B2C focuses on a very important link in the value chain - that of satisfying consumer wants, the value chain is made up of many more links! Thus Business-to-Business represents, by far, the largest area of opportunity for a new eBusiness. Maybe you will create a company that performs a business function especially well using Internetworking and New media as key technologies? If so you could make a million.
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?
In addition to the specific factors to the raise of Ebusiness,I believe, is"borderless selling."
Borderless selling is the ability to sell products and services from country to country via modem which doesn't implement tariffs, quotas etc. to hinder international trade. Such services are: Financial services, videos, music, advertisements, purchasing of software (which can be downloaded), accounting...and the list goes on. Services now can be exported through networks without the need to regulate trade which is a huge factor to the raise of Ebusiness.
Posted by: Billy MacDonald | Oct 1, 2007 12:29:54 PM
I agree very much with Billy. Take a look at Ebay, for example, which is a phenomenom itself. Ebay has millions of users and is the host for how many sales transactions per day? A lot is for sure. There is almost no limit to what you can buy or sell on the internet these days, even Pharmaceutical drugs are now available for online purchase with a prescription, who wouldn't want the convenience of that?
Posted by: Lauren Tweel | Oct 1, 2007 8:14:11 PM
I too agree with the previous statements. It is amazing how efficiant and simple it is to make a transaction without leaving the house and using electronics and almost anything is available. The internet opens up such a large cost efficient market, so why wouldn't companies take advantage of that?
Posted by: nick drake | Oct 2, 2007 12:31:52 AM
Wow, I agree with the three of you. Ebay and Amazon alike are companies that almost everyone knows about. You find just about anything for half the price you would pay normally. But how comforting is it to buy something you can't see or touch? I know of a lot of people who swear by these companies but I know people who won't use them ever again because of bad experiences. Anyway, it had become a real "money maker" for Ebay and Amazon stores.
Posted by: Katelyn Murnaghan | Oct 3, 2007 7:10:15 PM
ebusiness sure has speed up how fast transactions really happen. The customer base of most companies especially in retail has grown substantially. I have great respects for the companies who have kept up with the drive to grow product availability in order to keep up. Companies went from having customer base of maybe 10 -40 thousand in one particular store to now an online store could be graced with millions of customers wih in a day.
Posted by: Joseph Bondt | Oct 3, 2007 8:41:14 PM
Well I can't break the chain so I agree with the four of you. Internet transactions do add a great convenience factor to purchasing any tangible item. But I would like to stress the "comfort level" that Katelyn mentions, is a very important factor that will always impede some forms of ebusiness. Although ebusiness has grown due to the convenience factor, it will have a hard time overcoming the physical aspect of purchasing. Like Katelyn states, some people won't buy things online because they cannot physically see or touch the item. What about the impulse purchases that consumers make because something "caught their eye" or it felt comfortable when they tried it on? Is there a way to do this through ebusiness? Well that is an idea worth looking into!
Posted by: Jason Kelly | Oct 3, 2007 8:43:59 PM
Don't forget that it's not just about buying and selling online. The advent of the Networking age has allowed businesses to reinvent their entire value chain.
Posted by: Mark | Oct 4, 2007 11:21:11 AM
i totally agree with everything you guys are saying. todyas world with the internet makes everything so quick and effiecient especially when it comes to being able to buy stuff online without even leaving the comfort of your own home. Also it is a way that people can pay their bills on time just by making a quick transaction via the internet.
Posted by: dave dunn | Oct 6, 2007 12:38:12 PM
Everyone else has done a good job defining "borderless selling". I believe it is like Billy said, selling products or services from country to country without dealing with tariffs. Videos and music are a good example.
Posted by: Colin Butler | Oct 8, 2007 8:44:17 PM