Impact of E Business on an Organization
The Impact of Electronic Business on the Organisation
Ronel Smith
Information and Communication Technology - icomtek
CSIR
South Africa rsmith2@csir.co.za Abstract
E-business is fast becoming an important initiative for companies to consider, one that impacts every aspect of how a business is run. This report investigates the impact of e-business implementation on various aspects of the organisation including; strategy, human resources, customer relationship management, the IT department, technology, the business environment, trust, service management and performance metrics. Implementing ebusiness applications will require process redesign, organisational restructuring and alignment, new job descriptions and reviewed and revised policies.
Organisations will also have to examine tax, legal and security issues. E-business is changing all the rules and models. An organisation’s ability to embrace new technology and business models is key to increasing the organisation’s productivity.
The Internet economy necessitates a fundamental transformation of traditional organisations. The true benefit of e-business is achieved through the digitisation of the entire value chain. For a successful e-business implementation it is important that decision-makers understand the nature of these changes, their potential impact, plan for them and manage the entire process in such a way as to ensure buy-in of all the relevant stakeholders. The decision to implement an ebusiness initiative should not be undertaken lightly and the benefits that can be gained from such a venture must be investigated thoroughly before deciding to go ahead.
1.
Introduction
Timmel [24, p.22] quotes W. Krenz, Vice President of
A.T. Kearny as saying “In 1999, the best chemical company had the best chemists. In 2005, the best chemical company will have the best e-professionals.”
This is true not only for companies in the chemical industry, but for all companies in
Ronel Smith
Information and Communication Technology - icomtek
CSIR
South Africa rsmith2@csir.co.za Abstract
E-business is fast becoming an important initiative for companies to consider, one that impacts every aspect of how a business is run. This report investigates the impact of e-business implementation on various aspects of the organisation including; strategy, human resources, customer relationship management, the IT department, technology, the business environment, trust, service management and performance metrics. Implementing ebusiness applications will require process redesign, organisational restructuring and alignment, new job descriptions and reviewed and revised policies.
Organisations will also have to examine tax, legal and security issues. E-business is changing all the rules and models. An organisation’s ability to embrace new technology and business models is key to increasing the organisation’s productivity.
The Internet economy necessitates a fundamental transformation of traditional organisations. The true benefit of e-business is achieved through the digitisation of the entire value chain. For a successful e-business implementation it is important that decision-makers understand the nature of these changes, their potential impact, plan for them and manage the entire process in such a way as to ensure buy-in of all the relevant stakeholders. The decision to implement an ebusiness initiative should not be undertaken lightly and the benefits that can be gained from such a venture must be investigated thoroughly before deciding to go ahead.
1.
Introduction
Timmel [24, p.22] quotes W. Krenz, Vice President of
A.T. Kearny as saying “In 1999, the best chemical company had the best chemists. In 2005, the best chemical company will have the best e-professionals.”
This is true not only for companies in the chemical industry, but for all companies in
References: (http://www.tanning.com), (030418). Butler, A.S. 2000. “ Developing your company’ s new e-business.” Journal of Business Strategy, Capturing the E-commerce Edge. New York: AMACOM Books, 2000. (http://www.informationweek.com/737/ebiz.htm), (030418). (030418). ess/expectations.htm), (020418).