Topics: Electronic commerce, Customer, Electronic business Pages: 7 (2186 words) Published: March 20, 2013
As the Industrial age fades into the annals of time, the Information age appears from the shadows. Advances in hardware and software technologies have led to the explosion of the Internet and World Wide Web where stored huge amount of variable information. The using of computer is increasing in almost every field of our life. Through accessing the internet and World Wide Web millions general-purpose computers widely spread over the world help people in business, industry, government and in their daily life. The internet and computer-based technology generated electronic business we call it E-business or E-commerce. E-commerce is technology mediated exchanges between parts as well as the electronically based intra- or interorganizational activities that facilitate such exchanges (Rayport, J. F. & Jaworski, B. J. 2004). These days E-business is growing at an incredible speed and it makes today’s business environment become more challenging, competitive, rapidly changing and complex than ever before. As more organizations understand the importance of E-business concepts, the prefix E- may more frequently appear in our life. Whether we want it happen or not, E-business affects every organization. It is impossible to hide from its impact or influence in the marketplace. All indication shows that E-business will continue to grow, so many organizations may find themselves either having to go online or go out of business (Trepper, C. 2000). The change of business environment forces the leadership of an organization to face variable challenges. The major challenges are evolution of customer needs, changing of technology, the security issues, integrating online and offline data as well as activities and identifying the key level of competitive advantage. The senior corporate leadership needs to redesign and reformulate its organization’s strategic plan. More over, the senior corporate leadership needs always renew and update its collected information to catch up with the evolution of customer needs and the development of technology.

The new age has arrived with a broad-based recognition that business is different today. The environment will be uncertain, competitive and rapidly changing, requiring extensive adaptation. Because with accelerating technology the world has become small and the gap between people and organizations has become narrow. An organization may realize that he is not only competing in the local marketplace but also competing in the world village. Small companies find many products are obsolete within months and market share is going to more agile competitors. Larger companies are under pressure, with declining sales and profit causing a wave of mergers and consolidation that will continue to change the landscape (Hurley & Birkwood, 1998). So the senior corporate leadership needs to deliberate about the new environment which the organization currently involving and which challenges the organization is facing. No doubt, E-commerce is the most important part of the new business environment. It should not be ignored when the organization redesign its strategic plan if the leadership willing to win the competition in the new business environment. According to Lou Gerstner, IBM’s former CEO, E-business is all about time, cycle, speed, globalization, enhanced productivity, reaching new customer, and sharing knowledge across institutions for competitive advantage (Deitel & Harvey, 2000). E-business presents numerous opportunities. However, it also poses challenges to the senior corporate leaderships.

First of all, the challenge for top management is to understanding the evolution of customer needs. The marketplace is complex and rapidly changing. That means the senior corporate leadership needs to forecast and invest ahead of the evolution of customer needs, so that the new-designed product can match customer desires. Through segmenting the aggregating process of clustering people with similar...
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