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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, todayís e-business requires more. Analystís further point out that e-business involves the continuous optimization of an organizationís 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.
Building an e-business, an integrated value chain that leverages the Internetís 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.
Further, in a successful e-business, this value chain rests on a foundation that leverages the organizationís 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 companyís 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.
EBM Components

Read further: Strategic Success in Ebusiness
Back: Achieving Ebusiness Success 

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