Effects of e-Business on Retailing - Example

Effects of e-Business on Project Mgt, Supply Chain Mgt, Retailing, Entertainment & Manufacturing Table of Contents Introduction 3 2.Effects of e-Business on Project management 3 2.1.Advantages 4 2.2.Disadvantages 4 3.Effects of e-Business on Supply chain management 5 3.1.Advantages 5 3.2.Disadvantages 6 4.Effects of e-Business on Retailing 7 4.1.Advantages 7 4.2.Disadvantages 8 5.Effects of e-Business on Entertainment 9 5.1.Advantages 9 5.2.Disadvantages 10 6.Effects of e-Business on Manufacturing 10 6.1.Advantages 11 6.2.Disadvantages 11 7.Conclusion 11 8.Reference 13 1. Introduction Globalisation and technological advancement has been constantly aiming to improve the nature of trade and business. It is very interesting to realise that globalisation has brought numerous opportunities for business and it also increased intensity of competition. On the other hand, technological advancement led by this globalisation strives to offer a sustainable competition advantage to gain upper hand position in the market. In this regard, e-commerce and e-business are the most significant technological boon for the entire business world. e-Business and e-commerce are linked together as Parazoglou commented that e-commerce is a form of e-business. E-commerce generally deals with buying and selling products through internet; whereas, e-business is “more generic term” and it encompasses entire business transactions like B2B, B2C, and B2G etc (Parazoglou, p.2). This paper will attempt to present effects of e-business on multiple areas of business including project management, supply chain, retailing, entertainment and manufacturing. The discussions mainly focus on pros and cons of e-business on the stated areas. 2. Effects of e-Business on Project management Project management is a set of activities aiming to achieve specific project objective by proper “planning, scheduling and controlling” (Lewis, p.7). The process of planning, scheduling and controlling is a challenging task that requires better communication, information and coordination among the related cross functional departments like finance, HR, manufacturing etc. In this regard, e-business is helpful in combining the stated three major tasks in project management. Information communication technology (ICT) is an integral part e-business, through a number application multiple projects are conducted for achieving better accuracy within timeframe. The entire process of project management can be executed through a web based platform. 2.1. Advantages A web based project management backed by e-business are better in many ways that the traditional desktop of manual based systems. Dikbaş and Scherer have identified a number of benefits of e-business for project management and these are listed below. It leads to improve the communication system in process of project management. It reduces the RFI (request for information) by enhancing the accessibility of necessary and relevant information. It is also helpful in shortening project’s overall life-cycle period. It enhances the ownership concept through high quality accountability and transparency. It helps to maintain records by proper documentation (Dikbaş and Scherer, p.439). 2.2. Disadvantages Along with major advantages, implantation of e-business also leads to developed certain challenges and drawbacks. It must be realised that use of technology have its certain weaknesses and hence, the web based project management backed by e-business also suffers from the same. Some of these weaknesses are stated below. The dependency of web connections like internet, intranet etc increased heavily and non-availability of such infrastructure are greater threat to success of a project. There are possibilities that due to issues in web- browsers, recurring payments increased. There are greater risks to loss of data due to failure of application due to technical errors. It also requires higher capital investment which becomes major weakness for small organisations. 3. Effects of e-Business on Supply chain management Govil and Proth has given a global definition of supply chain and they define it as “a global network of organizations that cooperate to improve the flows of material and information between suppliers and customers as the lowest cost and highest speed” with the objective of customer satisfaction (Govil and Proth, p.7).Supply chain management must be perceived as a systematic theory and use of electronic technology has brought a major development in this field. In supply chain, e-business such an ERP system are very popular and aims to offer high quality business processes by increasing customer satisfaction. In this regard, Wal-Mart’s supply chain process must be mentioned. The global leading retailer has implemented RFID technology that has increased its security system and entire process of supply chain can be managed at much lower cost (Gale, Rajamani and Sriskandarajah, p.2-3). 3.1. Advantages Implementation of e-business in supply chain management (SCM) has been proved to very successful as it has turned to be as one of the vital factor in enhancing business value. Use of e-business technologies like ERP in supply chain provides four major benefits as stated below. ERP software for SCM improves the overall network system among multiple tasks like inventory, suppliers, and retailers, manufacturing etc. These entire processes can be managed with 3600 visibility with the help of e-business technologies. Time is a very vital factor in supply chain and e-business is very effective in minimising the unnecessary delays as every associated team are having all the information, and better coordination is possible. e-Business enables better collaboration with suppliers, manufactures and distributors leading better SCM performance. It is also helpful in reducing the overhead cost of a company. 3.2. Disadvantages The disadvantages of e-business in the process of supply chain are not too significant as very key success advantages can be achieved from its application. The advantages of e-business in supply chain have outweighed its disadvantages. However, some of its major drawbacks are discussed below. Implementation of e-business technologies like ERP takes nearly 1-years for fully execution. In case of decentralized organisational structure, it become quite impossible to implement e-business in supply chain process. It required very high capital investment for developing IT infrastructures, up-gradation, wan links etc. The management along with suppliers and distributors must have proper skills to management such technologies. Therefore training costs are needed to be incurred. 4. Effects of e-Business on Retailing Retailing is primarily service sectors and retailer offers their services to the final customers by delivering the goods made by manufactures. This sector is emerging as a very important segment for trade and business, since last two decades there have been a major developments in retailing business. Supply chain is the core and primary task in retailing business and effect of e-business on SCM has already been described in previous section. However, managing a retailing business includes a number challenging and complex tasks. For example, managing customer database and relationship is the key to success for any retailers. E-business technologies like customer relationship management (CRM) application have paved for retailers to achieving better growth (Whyte and Whyte, p.11). 4.1. Advantages e-Business has offered multiple opportunities to prevailing retailers. In this regard the biggest advantage is advent of e-tailing. Retailers are now able to sale their products through online using e-commerce technologies. Some advantages of benefits due to e-business application of retailing business are given below. Customers’ behaviours are constantly changing and retailers must aim to identify this. CRM applications are very useful as it helps in analysing buying behaviours of consumers. Retailers now can extend their market without establishing stores through e-tailing. Supply chain backed by e-business has offered better retailing performance and better customer satisfaction. e-Business is also very influential in framing retailing strategies for achieving competitive advantages (Windischhofer, p.75-80). 4.2. Disadvantages Retailers mainly deal with the number of customers and use of technology often creates issues due to lack awareness. Besides, increasing competition in retailing business has made the retailing technologies complicated. Pertaining to these issues some more disadvantages are given below. The technologies in retailing business are changing constantly and retailers with better financial stability are able to implement these. However, other small retailers lag in this race. Sometimes it becomes quite difficult to integrate e-business in retailing business with the existing business structure due to lack of efficient telecommunication capabilities. Hackers often create threats to reliability and security and hence, many customers often avoid online shopping (Colby, p.2). 5. Effects of e-Business on Entertainment Entertainment is another emerging areas and it is transferring as major industry in global business scenario. Entertainment industry today includes number sectors like film & movies sector, broadcastings, video gaming etc. The emergence of present days’ entertainment industry is primarily driven by technological advancements. For example, internet has brought a numerous ways of entertainment like social network sites, online gaming, online music and movies downloads etc (San José State University, p.90). Jeff Mayzurk, the technology director at E! Online claimed that e-business and internet has been able to combine the “content, audience and brand” (InfoWorld, “E! Online”). 5.1. Advantages The growth this immediate entertainment industry mainly based on technologies such as e-business and e-commerce. Without this technological advancement, the emergence of entertainment industry was not possible, e-business technologies provides multiple advantages to this industry. Certain major benefits are pointed out below. Information services in entertainments are highly essential and e-business enhances the accessibly of relevant information. Communication and advertising in this industry is one of the key factors for success as brand development remains primary tool for attracting the target audience. e-Business and e-commerce are efficient in this regard. Online shopping is major benefit for entertainment service providers as it is major source sales revenue. In case of gaming industry, customer can plays online games and it is a significant development gaming industry lead by e-business technology (Andam, p.17). 5.2. Disadvantages e-Business and e-commerce has always been playing a vital role in emergence of entertainment industry. However, there are very few disadvantages of e-business and e-commerce on entertainment industry. In case of media and entertainment sector, lack of security in the process of e-business and e-commerce has negatively affected the businesses. There has been negative impact on social life due to technological improvement in entertainment sectors. For example, online video gaming has a negative impact on social health for which online gaming has been criticised. 6. Effects of e-Business on Manufacturing Manufacturing industries are largest industries and it includes a number of sectors like automobiles, clothing, electronic products etc. In the process of SCM, manufacturing stand in between the suppliers and distributors. Therefore, management of manufacturing process must follow a very systematic way aiming to achieve total quality management (TQM). Manufacturing business mainly deals with B2B transaction from both ends i.e. with suppliers and with distributers (Plant, p.106). 6.1. Advantages Manufacturing process is based on the multiple tasks including investor, procurement, R&D etc. In each of these processes, execution of e-business is highly required now-a-days. Prime aim of manufacturing process is to increase productivity by maintaining higher quality product at optimum level of cost. Olhager and Rudberg have found that e-business has a major influence on three areas of manufacturing process. These three areas are vertical integration, planning and controlling. Moreover, e-business is also very effective for developing new system of communication that a manufacturing department must be developed with its suppliers and buyers or distributors. Another major task in manufacturing is the proper and necessary decision making for which better coordination among cross functional teams is highly required necessary (Olhager and Rudberg, “Manufacturing strategy and e-business: an exploratory study”). 6.2. Disadvantages Manufacturing is the core process for any manufacturing business unit as quality of product is major determinants of business growth. However, as it has already been discussed, in this process, e-business technologies highly required. On the other hand, implementation of e-business in manufacturing is always possible or viable due to certain reasons that remain as major drawbacks of e-business for manufacturing. Firstly, it is not possible to implement e-business in all types of manufacturing process. For example, in case of food manufacturing there are certain limitations due to its perishable nature. 7. Conclusion This paper has aimed to present role of e-business in the present business scenario. It is quite clear that e-business and e-commerce technologies have led to revolutionised their entire trade and business by bringing massive growth and development. On the hand, it also brought certain negative impacts on business. These two areas i.e. pros and cons of e-business are discussed in context to five major business areas like project management, supply chain, retailing, entertainment and manufacturing. As per the overall discussion, it is observed that e-business has brought better accessibility of information, proper communication, better coordination, greater transparency within an organisation. Greater dependency on technology, security issues, and high capital investment for e-business implementation is some of its major issues. However, based on the above analysis, and analysing current business scenario, it can be easily concluded that advantages of e-business on the growth of trade and business has entirely outweighed its disadvantages. 8. Reference Andam, Z. R. May 2003. e-Commerce and e-Business. August 02, 2011 http://www.apdip.net/publications/iespprimers/eprimer-ecom.pdf. Colby, D, E. February 2004. E-Retailing: The Real Story. August 02, 2011 . Dikbaş A. and Scherer, R. eWork and eBusiness in architecture, engineering and construction: proceedings of the 5th European Conference on Product and Process Modelling in the Building and Construction Industry : ECPPM 2004, 8-10 September 2004, Istanbul, Turkey. Taylor & Francis. 2004. Gale, T., Rajamani, D. and Sriskandarajah, C. September 26, 2005. The Impact of RFID on Supply Chain Performance. August 02, 2011 . Govil and Proth, Supply chain design and management: strategic and tactical perspectives. Academic Press. 2001. InfoWorld, “E! Online”. October 04, 1999. IT Careers in E-Business/E-Commerce. InfoWorld Media Group, Inc. Lewis, J. P. The project managers desk reference: a comprehensive guide to project planning, scheduling, evaluation, and systems. 2nd ed. McGraw-Hill Professional. 2000. Olhager, J. and Rudberg, M. .2003. "Manufacturing strategy and e-business: an exploratory study", Integrated Manufacturing Systems, Vol. 14 Iss: 4, pp.334 – 345. Parazoglou, M. P. E-Business Organisational & Technical Foundations. Wiley-India. 2006. Plant, R. T. Ecommerce: formulation of strategy. Prentice Hall Professional. 2000. San José State University. June 16, 2008. Ebusiness. August 02, 2011 . Whyte, B. and Whyte, W. S. Enabling ebusiness: integrating technologies, architectures, and applications. John Wiley and Sons. 2001. Windischhofer, R. 2003. The Role of E-Business for competitive Advantage in the Transforming European Food and Non-Food Retail Business. August 02, 2011 . Read More