It examines the current situation of e-business and its future ambitions by merging 10 years of e-business growth data with transaction cost economics. We will discuss management information systems as we investigate how the theoretical, practical, organizational, and managerial components of e-business might collaborate to create new products, models, and processes. Read on to discover everything there is to know about e-business management and to become a subject matter expert on it.
To remain competitive, any firm must adapt to the times. Companies who know how to handle customer service online have outperformed their expectations. Consider the following examples: Pizza Hut, Walmart, Amazon, and eBay. One of the distinguishing features of these businesses is their ability to use technology to change their business plans to fit the needs of their customers. They’ve had a lot of success by prioritizing the customer in their business methods. What truly distinguishes them from the competition is their emphasis on technology and a customer-centric company model.
E-business Management
Even though the dot-com bubble crashed, internet buying and e-commerce have transformed the way firms operate, spawning new business models and increasing worldwide market competitiveness. This course will teach students the fundamentals of electronic trade (e-commerce) from a business perspective in an Internet-based economy. This course will teach students the fundamentals of creating a business model, developing an inter-organizational business process, describing an e-business service, and evaluating the technology environment. At some point, teaching will involve research, group projects, case studies, and regular classes. Here is an overview of e-business management with a detailed explanation for your better understanding.
Product
An e-business manager or management team typically assists with decisions such as what to sell, creating web-specific product lines, and developing a pricing strategy. All of these jobs will require involvement from the sourcing and purchasing departments.
They aren’t expected to know much about logistics, but it is their responsibility to ensure that customers receive their items quickly and affordably, and they should also stay current on any new technology that the firm may need to adopt in the future.
Relationship Marketing
Relationship marketing has grown concurrently with the recent changes in marketing. Many businesses return to mass customisation and standardization to save money by purchasing in bulk. People’s interactions with one another were what fueled products purchases. As competition has increased over the last few decades, it has become more vital to distinguish yourself from others. If you want to make a change, you must first understand what your customers want and need. As a result, marketers began to focus on the single buyer rather than the overall audience.
The primary purpose of relationship marketing is to retain clients and encourage them to purchase from you again. Relationship marketing is primarily concerned with acquiring new business and retaining existing customers. Getting new clients is free, does not require discounts or coupons, makes individuals less price aware, increases the likelihood of recommendations, and guarantees greater sales. Because of these factors, it is prudent to focus on your current consumers.
Enterprise Resource Planning
Enterprise resource planning (ERP) is a cross-functional program that integrates with other applications. The purpose is to re-engineer a company’s production, sales, finance, human resources, and other business processes so that they are more efficient, adaptive, and profitable. For example, business resource planning software can assist a corporation in streamlining the purchasing process. As part of this process, we collect data on product availability, prices, delivery timeframes, quality ratings, and supplier price comparisons. ERP software is vital for e-business architecture, meeting customer expectations. It integrates back-office functions for marketing, production, and customer support. ERP also provides managers with information regarding cross-functional operations, which aids decision-making and is used to assess corporate success.
Inventory Management
“Inventory management” refers to how a business keeps track of the things it has in stock. Moreover, inventory management entails a variety of tasks such as planning ahead, ordering, refilling, and storing. As the number of items sold increases, strategic inventory management becomes more challenging. It is also possible to create and sell new and different types of things, which may cause stockpiles to increase. Inventory tracking is a key aspect of supply chain management, and the appropriate approach can aid with this.
Many small businesses make the mistake of believing that when they employ a third-party logistics (3PL) firm to handle customer fulfillment and storage, they no longer have to manage their own inventory. In reality, a third-party logistics provider may be able to provide sellers with valuable information and tools for managing their inventory in the most efficient and cost-effective manner (3).
Technologies for Knowledge Management
Three key tools for knowledge management are knowledge management portals, data mining, and data warehousing. Data warehousing is the process of scanning large databases for relevant information about a company’s products and services. As a result, clients have immediate access to information. Data warehousing is an advance over prior methods of data storage, which entailed storing data in separate systems that could not communicate with one another. Companies have the capacity to store information worth billions of bytes.
People may be able to find reliable information thanks to data processing. “Data mining” refers to a form of software that employs decision-making processes to search large datasets for patterns and correlations that may be beneficial. Analyzing data allows managers to see patterns in how people in a specific group buy products online. Workers may access all of their company’s information from a single location via a knowledge management site, even if the intranet is overloaded. This website can also be utilized to provide employees with individualized access to information.
Electronic Customer Relationship Management
“Electronic customer relationship management” refers to the activities taken to plan CRM strategies that involve computers and the internet.
Customer Lifecycle Management
From a business standpoint, customer lifecycle management entails selecting customers, acquiring new ones, retaining existing ones, and acquiring new ones. Client selection is the step in the process where the company determines which consumers will receive marketing plans. This includes developing marketing strategies to attract new consumers, retain existing ones, and maybe expand your organization. A company’s goal during the acquisition phase is to acquire as many clients as possible for the least amount of money. A key component of this strategy is pursuing high-potential, high-value consumers. At the present, the organization is focusing on strategies to keep their existing clients. This concept describes the process of determining which products to provide based on the characteristics of potential clients.
Managing Applications Systems for E-business
E-business is based on technology, which may be used in a variety of ways both within and outside of enterprises. It simplifies a wide range of activities and business procedures. However, organizations cannot maximize the benefits of technology if it is not employed effectively. Because of poor technology management, many organizations have had to run a variety of systems across all of their locations. This includes installing a large number of PCs and running various programs across multiple data networks. Some organizations keep their databases and phone networks separate, while others have numerous apps that cannot communicate with one another. This incurs substantial maintenance costs and is also a waste of money. These types of firms cannot use technology as effectively as they should to solve problems, operate swiftly and adaptably, and cut expenses.
Managing Knowledge
Many firms today understand that sharing information and transforming into learning organizations is the best way to stay ahead of the competition. Businesses must develop an environment that encourages and promotes creativity and new ideas in order to keep information flowing, share it throughout the organization, and use it to create distinctive goods that customers will like. It is highly relevant and persuasive in today’s economy, which is characterized by rapid change, technological obsolescence, and market volatility.
FAQ
What are the Components of E-business?
E-business encompasses enterprise resource planning (ERP), business intelligence (BI), supply chain management (SCM), customer relationship management (CRM), e-business, and electronic transactions within a business. They are also collaborating and conducting business online with other organizations.
Which Threat is E-business?
Online shops must exercise extreme caution when dealing with Trojan horses. Trojan horses are malicious malware that masquerades as legitimate applications. Trojans are a tool that thieves and hackers can use to get access to users’ systems.
What can E-business Practices Offer a Business?
Buying and selling goods and services, answering customer questions and accepting payments, managing production and supply chains, collaborating with business partners, sharing information, operating automated employee services, and hiring new employees are all examples of customer or management-focused business processes.
Final Remarks
To be successful in e-business, you must have a variety of additional abilities, including good leadership and communication skills, a grasp of the products, and, in certain cases, the ability to speak more than one language fluently in order to assist clients from across the world. Managers of online firms must be well-versed in technology and understand internet trends in order to assess the effectiveness of their communication strategies. We sincerely hope that you learned something new and found this tutorial on e-business management to be useful. To gain a fuller understanding of scope of e-business subject, read more extensively.