Chaffey also mention that electronic networks gives organization more internal value which is through knowledge sharing and improving process efficiency via intranet (Chaffey, 2011)
It is very important for organization to determine where it wants to be in the future by accurately knowing where it is now so that it will determine where to be in the future. (John Ward, 2002)
Three benefit of having an e-business strategy in an organization:
Reduce costs: Cost is an important part in an organisation, e-business brings cost efficiency to an organisation by reducing the resources that are used to create market and deliver resources using information technology (Chaffey, 2011). In e-business all business application can be access through a browser which replaces the traditional and complex collection of multiple data also the use of technology has reduce the paper work that take spaces and time and this reduces the cost of space and hiring staff. An example is what Chaffey point out with the case of Capital One Company which enables their customer to apply and receive their customer services online. Also many house hold in Britain, it is reported that between 2000 and 2010 the number of household that uses online bill is 36.4 million which is 61% of and 51% of women.
(http://www.paymentsnews.com/2010/05/fiserv-survey-details-online-banking-and-bill-payment-usage-by-us-consumers.html). This shows that e-business strategy reduces cost for both organization as well as consumers.
Improve customer value: Organisations survives by retaining their customers and core values and this can be achieved by improving their product and services. Having an effective e-business strategy provides information that studies the behaviour of customers and this will constantly improve customer services. An example is Tesco club card that is used as a form of studying individual shopping habit by using data mining method; this stores each customer’s details into their database so that Tesco can use this to study customer shopping habit and also forecasting their sales. Amazon.com also uses this method of data mining to recommend products for each customer by referring similar product follow the trends. Finds new markets for products and services: e-business strategy enables organisation to innovate, organisations can gain innovative ideas through global market for example Zara continually strengthen and consolidating and reengineering their product through innovation to satisfy their customers and to keep up with the fashion trends (Marzia Zaman, 2010). This enables organisation to create a new way in which their poroduct or services can be created.
Three tradeoffs of having e-business strategy in an organisation.
Location: Physical location has always been part of trademark of businesses an example is retail stores where the stores are in a particular location and each physical location comes with a cost and the store product in this location is associated with higher cost. The emergence of e-business has reduce the number of physical retail stores and this has given customers the convenience of reach because there is no limit to number of location that a…