The Driving Force Of Electronic Commerce (EC)

The Driving Force Of Electronic Commerce (EC)

-The Driving Force Of Electronic Commerce (EC)- To understand why the EC became so popular, it will be very useful to look at today's corporate environment, pressure mempengahuri organization, the response given by the organization, as well as the potential role of the EC.

Market factors, effectiveness, social, and technology has created a business environment that is very kompetetif where the customer is the focal point. Furthermore, these factors can change quickly, sometimes unexpectedly (Knoke, 1996). Therefore, companies must often react quickly to problems san opportunities arising from this new business cycle (Drucker 1995). Because the rate of change and
the level of uncertainty in the competitive environment in the future is expected to be growing rapidly, the organization will move under increasing pressure to produce more of it faster, using fewer resources.

Boyet and Boyed (1997) emphasizes the dramatic changes in this and describe it as pressure or encouragement of business. They both sustain the argument that in order to be successful (or even to just survive) in this dynamic world, companies need to take not only the traditional measures such as lowering costs and closing facilities that are not profitable (as in the case of Egghead Software), but affect juiga innovative activities such as clicking customiztion products, create new products, or to provide a reliable customer service. We call this traditional and innovative activities, some of which are interrelated, as a critical response activities. This activity can be implemented in some or all of the organizations, ranging from daily processing payroll on a regular basis to order entry to strategic activities such as the acquisition of the company. Can also occur in a process known as xetended supply chain, which is in the process of interaction between the enterprise with suppliers, customers, and other partners, such as jerseys Intel and Wal-Mart. A response may be a reaction to pressure that are already there, or can also be an initiative that would maintain the organization of the various things that potential will be pressure. Many activities response exploit any opportunities created by the changing conditions. Many activities in response that really can be facilitated by the EC. In some cases, the EC is the only solution for these business pressures (Tappscott and Callon 1996).

Business impulses cause the pressure within the organization. The organization responded with activities supported by IT in general and the EC in particular. Now, let's look at these components more closely. To Understand the role of the EC in the organization today, it will be helpful to review the environmental factors that create major business pressures on the organization. The term environment refers to the act of tapping -These actions business social, economic, legal, technological, and political influence of corporate activity. In this book, the pressures of business is divided into categories pasa, social, and technological.

To help you memahmi influence on the organization's business pressures, we will use a classic management framework originally developed by Levitt, last modified Scott-Morton (Scott-Morton and Allen, 1994), then we modify again, to reflect the role of IT in general and E-commerce in particular.

Organization made up of five main components, one of which is IT (including EC) and surrounded by an environment that also includes the EC. The five components that are in a stable condition, the so-called equilibrium, to the extent not happen a significant change in the environment or in any of its components. However, once there is a significant change, the system becomes unstable, then some or all of the internal parts need to be adjusted. As we can see in the picture, komonen the internal components interrelated. For example, changes in the structure of the company. Similarly, the presence of the EC, both within the company (eg applied competitors) as well as the initiation of the EC in the companies concerned, will lead to changes. Unstable organization may not be able to lead or even to just survive; Therefore, organizations need immediate critical response activities.

However, the traditional response activity probably will not work on the EC so many solutions are already obsolete need to be modified, disupplemented, or omitted steps to make changes in the marketplace. Such activities include the exploitation of the opportunities created by the impulses from the outside. The main activity of the organization's response is divided into five categories: strategic system to achieve competitive advantage, continuous improvement efforts, businnes process reengineering (BPR), an alliance of businesses, from one category. Electronic commerce can also facilitate other categories sebagimana will be shown later. The fourth category will be reviewed in the following sections.