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Ebusiness Model - Definition
| The emerging e-business market affords companies of
all sizes and types the opportunity to leverage their existing assets,
employees, technology infrastructure and information to gain or maintain market share.
For example, by selecting powerful ecommerce software, offline businesses have expanded
their reach and tarte earning business revenues . With lower barriers to entry, new competitors are
rapidly entering the market offering new services such as online bill presentment and payment, and leveraging their unique
digital assets.
Information technology research analysts agree that e-business is any
net-enabled business activity that transforms internal and external relationships to create value and exploit market
opportunities driven by new rules of the connected economy. However, today’s e-business requires more.
Analyst’s further point out that e-business involves the continuous optimization of an
organization’s value proposition and value-chain position through the adoption of digital technology. The
challenge for an organization is to turn the vision and the market opportunity into a viable business. Developing
the marketing strategy and plans, designing and deploying the business solution is key. Those who successfully
architect, develop and deploy e-business solutions will need to formulate and adopt a comprehensive business
plan. Because of the critical role of Internet technologies and the integration requirements, Tanning recommends
a comprehensive planning framework, an e-business
model (EBMTM). This structured planning approach enables the organization to assess, plan for and
implement the multiple aspects of an e-business.
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| Building an e-business, an integrated value chain that leverages the
Internet’s communications capabilities is a complex undertaking. The complex integration requirements of the
business solutions all-performing at extremely high levels of availability and scalability require this EBMTM architect
approach. The value chain, comprised of the traditional supply chain management functions, planning, procurement
and inventory management, coupled with the customer facing functions, typically referred to as customer relationship
management, all have integration and performance demands that exceed the requirements seen in traditional
businesses. In a successful e-business, all of these areas are tightly integrated to provide an organization the ability to quickly and efficiently sell, manufacture and
deliver products or services.
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| Further, in a successful e-business, this value chain rests on a foundation
that leverages the organization’s existing core operational business systems, as well as meets the new business-critical
operational requirements for reliability, scalability, flexibility and 24x7x365 availability in a highly volatile, electronic
marketplace. An EBMTM includes three essential elements: solid strategies, knowledge management techniques applied to a
company’s information and intellectual assets and effective e-business processes typically grouped in the
customer
relationship management (CRM), supply chain management (SCM) and core business operations domains.
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Read further: Strategic Success in Ebusiness
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Back: Achieving Ebusiness Success |
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