E-business is the way of the future Essay
“E-business (electronic business), derived from such terms as “e-mail” and “e-commerce,” is the conduct of business on the Internet, not only buying and selling but also servicing customers and collaborating with business partners. ” (Nelson, 2001) Due to the ever changing way that business is conducted. E-Business is no longer about promising future profitability relying solely on the benefits of the internet technology. E-business is about using Internet technologies to transform key business processes. It is about strengthening the company’s relationship with its customer, suppliers and increasing efficiency.
Using the internet for research or even communicating via the internet is E-business. E-business involves business processes spanning the entire value chain: electronic purchasing and supply chain management, processing orders electronically, handling customer service, and cooperating with business partners. All of which will help with the smooth running of TGL, it makes business much quicker, and easier. (Liautaud, 2000). However it doesn’t stop there, E-business will allow TGL to reach narrow market segments through customized content, through the information they can receive.
It can also increase purchasing opportunities and options for TGL, looking at different suppliers as well as opening up to new consumers (Liautaud, 2000). However like with everything there are disadvantages and the biggest is whether they can incorporate the e-Business in to their current system to suit their needs. This is often challenging and may take some time for TGL to get use to. With concerns of TGL business model and what approach they should take, I think the obvious one is business-to-business approach, which is there current way of doing business.
An E-business model is an approach a company will take to become a profitable business on the Internet. A business-to-business (B2B) model is explained as being”… driven from two sides. At the pragmatic level are businesses looking to use technology to develop improved ways of working and relationships with trading partners up and down the supply chain. At the other end of the spectrum are the e-commerce product and service providers who are developing new ideas and concepts and hoping that some will fly. ”
What we know from the way TGL is operating this can be easily done, B2B incorporate tools to manage supply chain and distribution of products and information. Furthermore strict B2B websites are typically a way for companies to interact with suppliers and distributors. However with TGL wanting to sell direct to the consumer, a business-to-consumer (B2C) is the most appropriate. They will sell direct to their consumers or market. B2C is more sales focused on selling to consumers. After looking at current research online sales are said to rise to 32% this year (Emily Seares, 2008).
Signs of more people shopping online should be on TGL’s mind. It is a huge market they are yet to exploit. What we do know is that this market is highly competitive, and is dominated by many large businesses and firms. It is a risk but for me it is imperative TGL exploit this as soon as possible. Having a website and e-commerce could help the company grow. The internet would open a huge market for TGL would probably help them sell their products on a global scale. TGL’s website, its design is vital. There is much to be said about first impressions and a website can be just that for a company.
If the website is poorly designed or is difficult to navigate it can possibly turn the consumer away from the company and lose potential business. To have a good website which will appeal to customers with easy navigation for customers will create efficiency and easy service for them. Online security needs to be considered for secure payments of goods. The site should offer information on not only product offerings but also corporate or agency information like employment opportunities. On the whole however the website should be based around selling to the consumers and with some space added for feedback and customer support.
In any case, the site serves to improve efficiencies within the firm to market their particular offerings. It is important that TGL give thorough thought to utilize the correct e-business model for their business and provide the content needed to attract and retain the desired customers. Regardless of the model chosen, the intent of having a website online is to provide increased support, cost savings and convenience to the customer and provide efficiencies to the company. Information Systems has a growing importance in business today. It has grown fast in the last few years and it continue to grow at an even faster rate.
Information systems have been used to solve a wide variety of common but critical business problems. At present TGL have a lot to look forward to, systems can sometime take time to fit in and have initial problems but in the long-term will be very beneficial for the firm. IS will help TGL to increase profits, expand their performance and position in the industry and gain a competitive edge. They will develop more as a company and will certainly give them the chance to compete with larger firms in the market. Technology is the future and firms need to embrace it or risk falling behind.