Emerging Technology and e-Business
The methodology of doing business has greatly been affected by the emerging technology for the last two decades. Business organizations are forced to adopt new technology in one way or the other in order to cope up with the dynamic customer and industry requirements. The most influential technology is the information and communication technology, which has seen business organizations diver their modes of conducting business from the traditional local based system to computer and internet based information seekers. It is arguable that the advent of computer and internet has changed the role of information in business, and has increasingly affected the supply chain management (Moore, 2000).
The principles of supply chain management (SCM) have been affected by the emerging information and communication technology in various ways, diverting the traditional methods of conducting business, and providing a platform for sharing information from supply to the market place (Moore, 2000). In modern times suppliers, manufacturers, distributors and consumers all have an access to vital information on the industry created by the internet technology, and it has therefore become easy to track the flow chain through these stages (Moore, 2000).
The customer is the most important requirement for any business organization. For a business to make profits, which is the ultimate aim of any business organization, there must be customers who purchase its products and services. In the SCM, business organizations have greatly turned to the internet technology in an effort to reach out for the larger worldwide pool of customers. The technology has created a large pool of customers on the worldwide basis, and has become a very important advertisement tool. This has resulted into a situation of increasing competitiveness between business organizations, with each trying as much as possible to lure customers into its own site (Moore, 2000). An example is the tourism industry, which is currently heavily relied on the internet to attract as many tourists as possible into each individual company. Hotels and other institutions based on tourism industry have increasingly been using the internet technology to discover out what customers in each nation no region require, and thus strive to satisfy their needs and inform them online (Moore, 2000).
Web services drive most of the businesses in that each organization strives to develop a portfolio through which both customers and suppliers will get the first hand information on the business organization, and it’s potential for developing a mutual partner in business. For example, it is a common thing for people to visit the website for any organization in order to know more about the organization, and through which communication is quick, efficient and effective than the traditional mailing system (Grefen, 2010).
For any business organization involved in e-business, the focus is on success. Without a clear focus, resources for the organization are just wasted through reaching out for the wrong audience. Focus on the market provides the business organization involved in the e-business with a clear structure and perspective to any endeavor. The intent technology has allowed business organizations to identify their customers, communicate with them online and thus reduce the advertisement costs which would otherwise be accrued if the traditional methods of advertisement were to be used (Grefen, 2010).
Through the internet and its associated and emergent technologies, the market for e-businesses is clear and already defined. Companies are there to create categories in the market, and not creating markets. Through the internet and its allied technology, the market for the e-businesses is wide and already established (Beyer, 2010). For instance, currently, there are over 140,000 SIC codes each of which has its own language and business strategic issues (Beyer, 2010). The internet and web based technology define the markets as an aggregate group of buyers sharing the same characteristics, but widely positioned by space and time.
Leaders in the market place select segments in which they can dominate and own. The internet and web based technology has allowed market leaders in e-business to choose and focus on a segment in which they can maximize their profits (Grefen, 2010).
The technology is complex and customers therefore require more support to adopt and utilize the new technology. It is normal for most people to resist change, especially where the change requires that people take extra lessons to get acquainted with the technology. E-business affects the supply chain management because it is quite a new paradigm which has changed the way the people work and requires extensive training and assistance. The technology has also changed the way companies maintain their organizations. Information system is the most important factor in e-business, and thus it has to be protected and maintained at all times.
Technology requires that that change if behavior be a real factor within the business culture. E-business requires that technology be applied extensively, where high touch or active marketing is the most crucial mechanism for changing behavior. Customers get their questions answered and present their opinions to the business management, which ultimately aid the businesses to improve their activities (Beyer, 2010).
The market system and the ecosystem are quite different for each and every product and its consequent target. One market system, as per the traditional business methodology, does not fit all while one market system does not reach all the intend customers (Beyer, 2010). Business organizations that understand and apply information based technology have some advantage over those who are more resistance.
Beyer, S. (2010). Supply Chain Performance Measurement & E-Business Supply Chain Management: Including a Practical Excursus on the Intel Case: Operations Strategy – Supply Chain Management. New York: GRIN Verlag.
Grefen, P. (2010). Mastering E-Business. Washington, DC: Taylor & Francis.
Moore, R. (2000). Ten Principles for E-Business Success. The Adoption of Business Solutions. Information Management Magazine. Retrieved from http://www.information-management.com/issues/20000901/2618-1.html.