Electronic business
This is the use of the Internet and other digital technology for organizational communication
and coordination and the management of the firm. Intranets are quickly becoming the
technology of choice for electronic business.
Opportunities offered:
1. Cost Reduction
Intranets provide an opportunity for reduction of costs associated with handling and
storing information. Since the information is stored electronically, there is minimal need for
paper-based systems which involve paper, printing and distribution costs.
2. Training Of Organizational Staff
Internet and intranet networks enable organizations to train their staff effectively. Training
could be through audio-visual programs contained in a company‘s intranet or through
videoconferencing (ability to confer with a group of people simultaneously using telephone
or e-mail group communication software)
3. Improved Group Collaboration
This is due to better intra-organizational communication facilitated by Internet and intranet
technologies such as e-mail.
4. Up-To-Date Online Information Repositories
Product catalogs, employee handbooks, telephone directories or employee benefits
information could be stored online in a company‘s intranet and could be revised
immediately as any changes occur. This approach enables organizations to respond more
rapidly to changing conditions.
5. Production Control
Intranets could be used to deliver financial information to manufacturing personnel so that
workers can monitor the production line‘s profit-and-loss performance and adapt
accordingly. The intranet can also be used to provide quality measurements such as defects
and rejects as well as maintenance and training schedules.
6. Improved Customer Service
Up-to-date organizational information, improved group working and production control
has the overall effect of improving the quality of goods and services offered to consumers.
Challenges:
1. Cost Of Changing To E-Business
Since e-business requires the use of the Internet and related digital technologies, a company
intending to implement e-business would have to consider internet connection costs, costs
associated with setting up and maintaining an intranet, etc. Such costs have to be clearly
justified by the potential benefits to be delivered.
2. Security And Privacy
Connecting to the Internet or setting up an intranet for e-business would imply that
adequate security checks have to be put in place to protect the organization‘s data.
3. Business Process Change Requirements
Setting up an intranet to provide access to shared organizational data would imply that the
document flow of the organization would have to be modified to take into account the
central shared repository of data.
4. Employee Resistance To Change
This could delay implementation of the e-business project since resistance has to be
addressed before implementation.
gregorymasila answered the question on November 22, 2017 at 15:44
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