Most companies in the world of capitalism always want more. They want more profit, more shareholder value, and more market share, among others. The realizations of these objectives have been attained through the successful initiation, development and management of a variety of factors that include E-Business in most instances. The reasons for this are certainly clear; strong E-Business value chain management are positively correlated with customer loyalty and profits. However, the efficient management of E-Business value chain can present challenges, especially in the case where managers are unable to accurately evaluate and assess their E-Business value chain management in terms of particular strengths and weaknesses objectively.
E-Business value chain
According to (Lawson, 2003), “E-Business value chain is the integration of all resources starting with the vendor and integrate information, materials, labor, facilities, logistics, etc. into a time-responsive, capacity-managed solution that maximizes financial resources and minimizes waste through the application of E-technology.” A whole cocktail of factors has been presented as forming the basis for the adoption of E-business value chain management including costs reductions in transactions, reduced growths in demands, competitive strategies and differentiations, changes in customers” behaviours among others (Lawson, 2003). Critical areas that demand E-Business management are presented in the diagram below.
Porter & Millar (1985) p. 151
In the adoption of E-Business value chain, my business had to take a keen cognizance on how to effectively manage emerging concerns of E-Business adoption without developing resistance to change among employees. The questions of how to manage these in an integrated context has however been presented as presenting several challenges. This becomes especially poignant within our organization because our retailers are professionals who are engaged in the sale and distribution of similar and/or competing products. The choices as to whether to rely on such competing distributors (retailers) differentiate the products or focus on products branding is a bottleneck facing the majority of companies in the world today. This will essentially call for clear understanding and employment of key concepts and postulates of E-Business value chain and the expected overall performance, in light of product development.
In addition to the above, my business has adopted better management of online supply management to achieve competitive advantage. Several definitions of competitive advantage have been advanced in literature, but the most appropriate one in the context of this paper is the one presented by Grant (2003) who asserts that “when two or more firms compete within the same market, one firm posses a competitive advantage over the rivals when it earns (or has the potential to earn) a persistently higher rate of profit.” In essence, this means that a firm that outperforms the others in the primary goal of performance-profitability-has competitive advantage. The management of supply chain through E-Business approach has enabled immediate savings through the simple online procurement and supplier management. This is because as opposed the traditional Electronic Data Interchange (EDI), E-Business only demands personal computer and internet connection to communicate with suppliers.
Towards this end, my business has accrued a lot of benefits that are not only related to cost reduction but has also enhanced the relationships with its suppliers. This is because according to Grant (2003) “Online, companies have a range of choices; they can communicate with suppliers individually through corporate extranets or through linked enterprise resource planning (ERP) systems, or they can procure through one of the many online exchanges.”
The next notable section that my business has made extensive applications of E-Business is the customer relations. According to Mathew, Cindy and Beatrize (1999), “customer relation management is a business philosophy that touches upon many independent parts of the organization.” This business philosophy is one of the driving factors upon which the company success is based. In this endeavor, this business culture is inculcated in all the employees to ensure that the customer is not only satisfied but also retained. Mathew, Cindy and Beatrize (1999), further highlights that, “to speed Customer acquisition, increase customer satisfaction and retention, and the company profit, it is necessary to develop a customer-centric business model linking back and front office around the three pillars that are Sales, Marketing and Services through E-Business”
Available literature abides on the fact that to achieve an effective CRM, this IT solution needs to be technologically integrated into operation syst