Question

What new and changed roles and responsibilities are required of an eBusiness that is not required by traditional business models? Provide a concrete example with a realistic scenario

Answer 1

Ebusiness refers to the process o using the Internet and associated technologies to transform every business process and e-eenable all parts of the organisation's value chain from acquiring, serving and retaining customers to interacting with employees, partners and the world at large.

Ebusiness is using technology to improve your business processes. This includes managing internal processes such as human resources, financial and administration systems as well as external processes such as sales and marketing, supply of goods and services and customer relationships.

Ebusiness involves all commercial activities, a dynamic set of technologies, applications, and business processes, performed across computer platforms that link organisations to their customers, suppliers and other business partners through electronic exchange. It not only provides new opportunities to sell goods and services but also adds value through improvement s in supply chain efficiency and effectiveness.

Entrepreneurs who are planning to start a new business venture should consider the difference s between an e business and a traditional business model.

Overhead costs- Ebusiness models generally have lower overhead and startup costs compared to traditional business models with brisk and mortar stores.

Consumer convenience- The growth of online retailers such as Amazon has made it difficult for traditional stores to compete with consumers who seek a convenient shopping experience. However there is still a group of consumers who prefer the process of a live shopping experience and the opportunity to physically examine products or try on clothing. Not all business are adaptable for strict e business models. Attorneys, doctors and dentists cant provide services exclusively online.

Market programs- Business that are exclusively online usually have a much larger digital marketing budgetthan a traditional business. Traditional businesses typically diversify marketing to attract customers from noth local areas and from online demographics.

E-commerce business spend more time on blog, social media and search engine ads. Some ecommerce business rely exclusively on low or no budget marketing compaigns while others sponsor ads with big budget campaigns.

Traditional companies often utilise the same avenues online although sometimes to a lesser extent.