Management Information Systems - Essay Example

se in the number of organizations that have, in one way or another, established their online presence and have utilized the Internet and information technology to conduct part or, even all, of their business transactions. E-Business and Information and Communication Technology (ICT) have become buzzwords for firms in every country around the world. In a study conducted by the Sectoral e-Business Watch in 38 countries (23 of which are in the European Union); e-business had become “an important instrument with which to implement strategy”.

E-business, according to the same study, provides opportunities to companies such as: 1. Access to international markets – with the current trend towards globalization, both big and small companies are going to e-business (or e-commerce) to expand current markets or even to tap new ones. 3. Affordable solutions – with increasing competition and the desire to increase market share, vendors of ICTs are now offering value solutions at lower costs. Thus, costs are no longer a barrier for a company to implement e-business. 4. Support from large firms – in order to realize the full benefits of e-business, large companies are now finding it more economical and more advantageous to connect with smaller trading partners.

This increases the number of users of ICT and reduces the cost per user of e-Business. Evidences abound on the positive impact of implementing e-Business and ICT in the enterprises’ operations or business. One positive impact is on the increase in or enhancement of productivity. In its website, e-Business Watch stated that studies on the productivity impact of e-Business have been conducted in various countries in Europe and other parts of the world. These studies show that there are evidences that e-Business and ICT increased the productivity of companies in all industries.

Implementing the ICT and e-Business had also improved the “links between activities in a company’s value chain and value system”