E-Business

E-Business Frameworks : Chapter 2

A company adopting an e-business model has to formulate its strategies on the basis of three major considerations - channel enhancement (or channel control), industry transformation, and convergence - in order to remain competitive in the dynamic business environment of today.

Industry transformation occurs as businesses reconfigure their business models to take advantage of new technologies. They should develop their competencies, and establish relationships with suppliers, customers and partners to form a value network. They need to leverage these relationships to improve their processes and customer service. The companies should assign the responsibility of managing the network to a senior manager. He/she will also manage the impact of the transformation on people, processes and technology.

As companies seek to build new competitive advantages to survive competition, they change their business processes and models. Boundaries of industries are altered, resulting in industry convergence. Advances in technology, deregulation of markets, the increasing intensity of competition, and higher customer expectations are the key drivers of convergence. The convergence strategies that companies use include: leveraging relationships, bundling, gate-keeping, cross-industry competence, disintermediation/reintermediation, brand convergence, and technology convergence.

To minimize the impact of convergence on its people and processes and emerge as a winner in a converging world, an organization should manage the different dimensions of the business effectively. It should manage alliances and partnerships, customer information, customer relationships, corporate brand, and technology effectively and productively.

Chapter 2 : Overview